A rocketing Euro is finding fresh buyers early in the illiquid transition from New York to Asian markets. The opposite is true for the Japanese Yen, surprisingly unable to unleash any bullish speculative attack at this time of the day; it did actually on USD/JPY, but failed miserably.
The combination of both behaviors leaves us with EUR/JPY landing at a new high of 113.25, after taking off at 112.88.
The fact that European officials finally came around to a long-term solution over the Greek debt crisis is encouraging the bid tone, which will find the first area of congestive traffic around 113.50. The bullish engulfing bar on the daily chart keeps the bias higher, and until reaching mentioned resistance (current price 113.20) a run-up of 30 pips in the next few hours is likely.
So, looks like there is still a chance to make some pips for those jumping in the Euro bandwagon, as long as no risk averse news hit the wires. Any turnaround on the current rise, and we envisage 112.65 area to provide decent support for the Euro.
The combination of both behaviors leaves us with EUR/JPY landing at a new high of 113.25, after taking off at 112.88.
The fact that European officials finally came around to a long-term solution over the Greek debt crisis is encouraging the bid tone, which will find the first area of congestive traffic around 113.50. The bullish engulfing bar on the daily chart keeps the bias higher, and until reaching mentioned resistance (current price 113.20) a run-up of 30 pips in the next few hours is likely.
So, looks like there is still a chance to make some pips for those jumping in the Euro bandwagon, as long as no risk averse news hit the wires. Any turnaround on the current rise, and we envisage 112.65 area to provide decent support for the Euro.
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