Will it be a bounce or break for EUR/JPY?
The pair is sitting at the very top of its short-term range and might take cues from the German Ifo report.
Before you place any orders, make sure you’re updated with the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Japanese services producers price index up 0.7% vs. expected flat reading
- Bitcoin off to a volatile start on “China whale” rumors
- U.S. to send medical supplies and raw vaccines to India
- Asian shares advance on China optimism and U.S. GDP expectations
Upcoming Potential Catalysts on the Economic Calendar:
- German Ifo business climate index at 9:00 am GMT
- U.S. durable goods orders report at 1:30 pm GMT
What to Watch: EUR/JPY
EUR/JPY moving sideways on its 1-hour chart, pacing back and forth between support around 129.85 and resistance at 130.60.The pair is testing the ceiling, still deciding whether to make a bounce or go for a breakout. A move past the range resistance could set off a climb that’s at least the same height as the rectangle pattern.
Euro traders would likely take cues from the German ifo business climate index, which is often considered a leading indicator of activity. The reading is slated to improve from 96.6 to 97.8, reflecting stronger optimism for the month.
Be on the lookout for yen volatility leading up to the BOJ decision in tomorrow’s Asian session, though, as traders might be keen on booking profits before this top-tier event.