Ahead of the Japanese CPI data release, the yen is trading higher against EUR and GBP. Due to lack of data from the eurozone and UK, today's session might depend on Japanese data. Analysts expect weaker inflation in Tokyo CPI and national CPI on a yearly basis. In case readings meet analysts' expectations, the cross will edge higher. The EUR /JPY and GBP/JPY crosses have been correcting for 4 weeks and 7 days respectively. The EUR /JPY cross has been forming multiple tops for 4 weeks. Initially, the cross made a double top at 141.04 and 140.65 later. The weekly support is found at 137.50 and 137.25. The parallel resistance is seen at 141.25. Early in June, the cross hit a high of 141.00. It made a breakout on the higher side from the inverse head and shoulder pattern. The bullish view remains in play with sl 133.00.
After 14 days of consolidation, the cross has finally closed below 20Dsma. The real selling ignited below 136.95. At yesterday's session, the cross was unable to close above that. At today's Asian session, the pair faced the resistance at 20Dsma. For an intraday basis, parallel support is found at 137.98. Selling will accelerate below 137.80 towards 137.30 and 137.15. The real selling ignited below 136.95. On the higher side, we recommend buying above 139.30 with targets at 140.00 and 140.65.
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