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    Technical Analysis – EURJPY peaks out of cloud top

    EURJPY is attempting to break out of the top of the Ichimoku cloud and there was a brief peak to 137.78 in early European session trading on Monday on the announcement of a Greek deal at the EU Summit.

    Prices broke above the kijun-sen line of 137.14. The intra-day bias remains mildly to the upside as indicated by the RSI which has just crossed above the 50 line. A further rise will see a retest of 141.04, the June 4 high. As long as support at 133.08 (May 26 low) holds, this will keep the bears weak, especially if the market remains above the 50% Fibonacci (133.52) of the 126.08 to 141.04 upleg. But a break below 133.08 could see a drop back towards 126.08 (April 14 low).

    In the bigger picture, there is no clear trend and the bias is neutral as the 200-day moving average is flat and the tenkan-sen and kijun-sen lines are flat. A break above 141.04 would see a bullish trend form but a break below 126.08 would see the downtrend from December 2014 resume.

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