EUR/JPY: in a bullish phase with more to go, target break of 115.45 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that following a test of 113.91, a major Fibonacci support early Asia, the EUR/JPY staged a strong comeback, entering positive territory for the first time in the week, rallying above the 115.00 figure.

Key Quotes:

"The Japanese yen came under selling pressure mid European morning on market talks suggesting the BOJ will review the guidance on the maturity range of Japanese government bonds that it buys, while later in the US afternoon, the Nikkei reported that the BOJ is analyzing cutting rates further into negative territory, adding to the bearish case of the safe-haven currency. The short term picture is now clearly bullish, as in the 1 hour chart, technical indicators are heading north near overbought levels, whilst the price is back above its 100 and 200 SMAs that anyway continue to lack directional strength."

"In the 4 hours chart, the Momentum indicator is entering positive territory with a strong upward slope, while the RSI indicator heads higher around 56, also supporting some further gains on a break above 115.45, the immediate resistance."