Opening Asian session saw price rally towards 120 in quick succession, making the 100 pip climb from 119 seemingly effortless similarly to 118 – 119 which we saw last Friday. Some resistance could be seen along Channel Top but that could only serve to slow down the bullish momentum as evident when price hit Channel Top twice last Friday.
Weekly chart shows price breaking from 116.0 and more importantly, the ceiling found back in May-Jun 2011. Price stopped around the bottom of the 119 – 123 trading range found in Apr ’11, with today’s advance looking to test 123 once more. Comparing EUR/JPY with GBP/JPY, both enjoying the weakness of Yen currently, EUR/JPY appears to have a more bullish setup, which is also attributable to the EUR/USD bull run which saw EUR/CHF reaching a similar 12 month high, rather remarkable considering EUR/CHF has been sitting on 1.20 for more than 6 months last year.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.