EURJPY Breakout in Full SwingThe rally in EURJPY this week has seen ourrecent long idea hitting its target at 140.82. Weakness in JPY amidst an uptick in risk sentiment is helping drive the pair higher. Additionally, hawkish ECB expectations ahead of the upcoming ECB meeting this week are adding further support. With the ECB expected to signal a hike in July, the monetary policy divergence between the ECB and the BOJ is expected to keep EURJPY supported near term, echoed by how heavily short the retail market is. With this in mind, bulls can look to hold longs while above 140.82 targeting 143.80 next.Keep an Eye OnThe current market dynamic of a stronger US Dollar is hurting JPY more than EUR. While this continues, we can expected EURJPY to remain supported. The key focus this week will of course be the ECB meeting however. The ECB is widely expected to announce an end to bond purchases along with signalling a hike to come in July. The focus therefore will be on the likely size of the first hike. If the signal seems to suggest a larger .5% hike, this will eb firmly bullish EUR short-term.
Source: Tickmill
