EUR/JPY: trading prospects
EUR/JPY extends the upside after having found support at 140.25 (38.2% Fibonacci) on Monday. Bulls pushed to 141.85 in the European session.
In our view, the pair offers good buying opportunities in the medium term, forming a bullish flag. We recommend buying EUR on a break above 143.00 yen with an initial target of 145.60.
JPMorgan economists also expect the pair to strengthen in the coming weeks: “A straight extension up towards 152.07 is still favored. It requires confirmation via a break above 144.46.”
Though don’t forget that the Bank of Japan’s monetary policy decision will be released tomorrow. This event could limit the upside in the yen crosses.
Chart. Daily EUR/JPY