EUR/JPY: Traction in upside momentum - SocGen

EUR/JPY has smashed the graphical resistance of 126 corresponding to 2015 lows and the upper bound of a multiyear ascending channel resulting in traction in upside momentum, according to the research team at Societe Generale.

Key Quotes

“Monthly RSI has also crossed above a trend resistance, confirming an upside break in the spot price. The pair should unfold another leg of up move towards a projection at 129.65 with the next target at 134.40, the 61.8% retracement from December 2014. The daily upward channel lower bound and the 50-day MA at 124 should be an important support.”