The EURJPY pair has risen notably on Tuesday and was 0.70% stronger during the London session, changing hands around 129.70 in the morning.
Traders are expecting optimistic ZEW surveys later in the day as the latest IFO surveys surpassed estimates and came out stronger than expected. Moreover, the euro zone’s employment numbers will be released.
Sentiment remains positive as stocks are rising again on Tuesday, which is benefiting the carry trades, such as JPY crosses and commodities. Therefore, the current bullish bias could persist throughout the day.
The cross is now testing previous highs around 129.75 and if bulls will be stronger, further rise toward another resistance at 130.25 might occur. Moreover, the momentum seems bullish and therefore the current cycle tops at 130.75 could be in play as well.
On the downside, the main support for this wave is around 129 and as long as the price trades above, the outlook seems bullish. Moreover, there is a big bullish divergence on the 2h chart, which gave strength to this move.