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EUR/JPY – higher and above 132.00 again

FXstreet.com (London) - There are multiple bearish divergences on the EUR/JPY charts that might be alarming to the bulls, but the pair has gathered momentum to trade higher on yesterday’s business.

The pair has regained its form after Japans economic minister was commenting that further weakness of the Yen could be ‘harmful’ to their economy. The pair has been enjoying levels not seen since 2009 where the yen has largely been abandoned in the recent shifts in market forces. It has resumed its positioning within a decisive move back to test 132.00 the figure with last weeks yearly highs of 132.79 as a target ahead of a busy European calendar this week.

This morning saw little reaction to German PPI data where the economy increased 0.1% over the last twelve months, missing forecasts at 0.2% and lower than March’s 0.4%. MoM prices contracted 0.2%, below expectations at -0.1%. German PMI comes on Thursday and GDP with IFO for Friday. Also to watch out for are the FED minutes affecting the pair in the EUR and Yen where the market has been pricing in comments with regards to ending the QE cycle. 131.50 is a key support line and the market may use close's either above or below this level to decide upon a short or long positioning in the pair.

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