EUR/JPY: Erosion of 134.16-134.30 is a bullish outcome - Natixis

The erosion of the 134.16-134.30 area in EUR/JPY is a bullish outcome for a larger rally in the next few days, notes Micaella Feldstein, Analyst at Natixis. 

Key Quotes

The erosion of the 134.16-134.30 area is bullish and paves the way for a larger rally in the next few days, all the more so as the weekly stochastic has picked up markedly.

Against this backdrop, we expect the pair to keep on climbing to next resistances located at 135.12-135.26 (weekly Bollinger upper band) whose break would provide fresh bullish impetus to the 135.92-136 area (Fibonacci extensions) ahead of the 137.40 barrier (monthly Bollinger moving average).

The supports are located at 134.16-134.30, at 133.40-133.55, at 132.80-133, at 131.91-132.04, at 131.27-131.39 and at 129.93.