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USDJPY and EURJPY Test Resistances, US GDP will be the Key

USDJPY broke the near term major resistance level at 105.00 with a long bullish candle, the level has turned into a support level.

On the 4 hourly chart, the price has been moving alongside the upper band of the Bollinger Band indicator, indicating a strong ongoing bullish momentum.

USDJPY has been bullish and trading above the uptrend line support since 27th September, helped by strengthening of the dollar.

The trend remains bullish, yet the price is nearing the mid-term major resistance zone between 105.50 – 106.50, the selling pressure will get heavier in this range. The bullish momentum will likely be restrained above this level.

In addition, the 4 hourly Stochastic Oscillator is crossing over from above, indicating a retracement.

The resistance level is at 105.50, followed by 106.00 and 106.50.
The support line is at 105.00, followed by 104.70 and 104.50.

We will see the release of the significant US Q3 GDP figure, at 12:30 GMT today. At the same time, we will also see the release of the Fed-preferred inflation figures, the Q3 PCE and Core PCE (QoQ) figures.

Be aware that today’s US figures will cause volatility for the dollar crosses, precious metals and US shares. Whether the resistance level at 105.50 can be broken, depends on the US figures today.

With better-than-expected figures, USDJPY will likely rally and test the resistance level at 105.50 again.
With lower-than-expected figures, USDJPY will likely fall and test the support line at 105.00.

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EURJPY has been trading below the downtrend line resistance since this January.

Yet the trend line was broken out with a bullish attempt today, due to the rebound of the Euro.

It is currently testing the next resistance: the near term resistance level at 115.00.

In addition, the 4 hourly Stochastic Oscillator is crossing over from above, indicating a retracement.

The current price action is still heading upwards, yet be aware that the bullish momentum will likely be restrained at this level, prior to a further rally.

The resistance level is at 115.00, followed by 115.50 and 116.00.
The support line is at 114.50, followed by 114.00 and 113.50.

Keep an eye on the German CPI, and the Harmonised CPI figures for October (YoY and MoM), at 12:00 GMT today, as it will likely influence the strength of the Euro.
With better-than-expected figures, EURJPY will likely rally and test the resistance level at 115.00 again.
With lower-than-expected figures, EURJPY will likely fall and test the support line at 114.50.

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