EUR/JPY - Price Soars Overnight!
EURJPY: Overnight we have seen the currency pair gain nearly 140 PIPs to the upside without any real warning. It is fair to say I preferred a strong bearish bias having broken structure of the triangular formation and expected further continuation with my sights set firmly on 126.000.
After causing a stir in the market overnight, it is hard to truly suggest a particular direction at this momentum in time so close to the weekend.
Higher timeframe analysis suggests there is a strong momentum to the downside with our moving averages showing continued pressure. However, We have now broken a vital resistance level that had previously been rejected on 4 separate occasions. 128.500 could now act as a support region for the pair for any retracements and retests of this level before continuing higher. There is the opportunity for a clean 150 PIP rally into the highs of 130.20 if the Euro remains strong against the JPY.
There may be continued volatility for the European pairs as we await the release of the CPI data and the news surrounding the EU Summit meeting, my advice to step back and start again Monday.