FxWirePro: EUR/JPY spikes over 1.25% on hawkish ECB comments

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 1.25% higher on the day at 138.67 at around 14:30 GMT

Previous Week's High/ Low: 137.96/ 135.51

Previous Session's High/ Low: 137.96/ 136.08

Fundamental Overview:

Hawkish comments from ECB officials boosted euro crosses across the board.

The European Central Bank (ECB) policymakers at the Jackson Hole argued for forceful or significant policy action.

Further, news that Germany’s ruling party Social Democrats (SPD) will propose further measures to help ease the impact of rising energy prices on citizens supports the single currency.

ECB Chief Economist Philip Lane noted on Monday that eurozone inflation is expected to remain high in the near term but added that long-term inflation expectations stay close to 2%.

Technical Analysis:

- EUR/JPY spikes past 21-EMA which was capping upside from many sessions

- The pair is testing cloud base and break into cloud will see more gains

- Momentum is with the bulls, stochs and RSI are biased higher and RSI is above the 50 mark

- Price action is above major weekly moving averages which are trending higher

Major Support and Resistance Levels:

Support - 137.22 (21-EMA), Resistance - 139.58 (23.6% Fib)

Summary: EUR/JPY pivotal at cloud resistance, break into cloud will fuel further upside.