First Target Hit

The falling wedge breakout trade in EURJPY has now hit its initial target at 130.69 after triggering long on the break of 129.59. With USD seeing some buying across the European morning today, EUR has been a little weaker. However, with North America offline today for the Labour day holiday in the US, there is room for EUR to gather momentum again, supported by MACD and RSI both being bullish here. While price holds above the 129.59 level, bulls can look for a continuation higher towards the 132.02 region next.

Key Data to Watch

Not too much on the slate this week for EUR or JPY. Japanese trade balance data on Thursday will be watched, as will the final Eurozone CPI print on Friday. However, the bigger focus will likely be on key US data over the week – CPI and retail sales. Any USD weakness on the back of these readings is likely to benefit EUR in the near term, lifting EURJPY. Any surprise upside in those readings, however, will likely weigh on EURJPY.