EUR/JPY Also Gets A Boost On Increased Risk Tolerance

The EURJPY has also gotten a boost this morning in NY.  The pair sold off in London session on the corrective and German GDP data which was as expected but weak.  The declines brought the pair down to test the 100 hour moving average at the 131.60 area.

The better data released at 10:00 AM in NY, led to a move higher back away from the 100 hour moving average (blue line in the chart above).  The pair has been tracking higher using the 100 hour moving average as support (at least 8 tests have occurred). The momentum to the upside is not exactly on a sharp trajectory higher, but as long as the the 100 hour moving average holds, the potential for a more dramatic break higher remains in the cards.

From a longer term perspective, the move above the 200 day moving average last week points toward higher levels from a  longer term perspective.  That level currently comes in at 130.78. On the topside, 134.81 and the high from the move comes in at 137.40.  These would be targets on a progressive bullish move higher from a longer term perspective.

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