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EUR/JPY presses higher Monday; resistance remains 145.76

FXstreet.com (Barcelona) - EUR/JPY continued to press higher on a closing basis on Monday – although the cross remains below Friday’s intraday high be a wide margin. A lack of data and light holiday trading may mean sideways action until Thursday.

No data til Thursday for EUR/JPY traders – until then, technicals and momentum are drivers

With no data due out all week from Japan due to their celebration of the New Year, the only data scheduled for this week that may have EUR/JPY traders’ attention include:

• Thursday – German and EU Manufacturing PMI;
• Friday – EuroZone CPI

Technical outlook for EUR/JPY

Technicians say the EUR/JPY is consolidating after its first test of 145.76 resistance. Odds are, they say, that the resistance level will be tested again before any real corrective action starts for the cross. If it manages to break through that resistance level, they say the 8/07 low of 149.25 would be the next target on the upside. Support starts at the 12/23 pivot low of 142.09 and is backed up by the 12/19 low of 141.86.

EUR/USD flat after Monday’s gains; ST resistance 1.3914; LT Elliott Wave target 1.4400

The EUR/USD faces major long-term downtrend line resistance at just above Friday’s high of 1.3914. That being noted, Elliott Wave technicians are growing more bullish on the cross for the intermediate-term.
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