The EUR/JPY currency pair rallied to the resistance zone around 141.819 after a prestine W-pattern formation in the early hours of the London session. My technical analysis suggests that it may sell off to the downside in the short to medium term. The medium-term target for the pair is 141.50, which is a key intra-day resistance-turned-support level that the pair has bounced off several times in the past. This level may provide temporary support, but if the bearish momentum persists, the pair could sell off further to the extended medium-term target of 141.10.
Recent statements from the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, regarding the possibility of reaching a 2% inflation rate, coupled with wage growth and the current easing policy, could gradually boost the Japanese economy.
However, a break of the resistance zone could see EURJPY rally to the next resistance level.
In conclusion, the market outlook for EUR/JPY is bearish in the short to medium term, with potential selloff targets of 141.50 and 141.10.
Recent statements from the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, regarding the possibility of reaching a 2% inflation rate, coupled with wage growth and the current easing policy, could gradually boost the Japanese economy.
However, a break of the resistance zone could see EURJPY rally to the next resistance level.
In conclusion, the market outlook for EUR/JPY is bearish in the short to medium term, with potential selloff targets of 141.50 and 141.10.