EUR/JPY on a clear bullish tone

FXStreet (Bali) - Following the abrupt rebound last Friday, when the rate surged from 140.00 round number to end NY at 141.40, the EUR extended gains in early trading until 141.68 on Monday, although the advantage was neutralized soon after, with the rate back to 141.45.

ECB key event ahead

The next risk event for the pair comes later on the week, when the ECB meets to decide on monetary policies. According to Katarzyna Komorowska, Fundamental Analyst at FXStreet: "Although the majority of market experts contributing to the ECB forecast report believe we won't see any action at the upcoming monetary policy meeting, a margin of possibility is left that some measures will be taken."

EUR/JPY technicals

Technically speaking, Valeria Bednarik, Chief Analyst at FXStreet, notes that "the hourly chart shows a strong upward momentum, with CCI turning north in positive territory, and price well above moving averages, albeit these lasts remain flat reflecting no real directional strength." In larger timeframes (4 hours chart), Valeria adds that "technical readings present a clear bullish tone with 142.00 as immediate resistance level to break."