The EURJPY is capped ahead of ECB Lagarde’s 1st speech.

The EURJPY is capped by a downtrend line and a 61.8% Fibonacci retracement ahead of Christine Lagarde’s first speech on economic policy. Her speech will be the Keynote speech at the Frankfurt European Banking Congress which she is expected to talk about monetary policy for the first time. Expect volatility, but from an FX perspective, a breakout of the 120.65 level in the EURJPY could be bullish, a move back below 119.00 towards the long term trend line can not be ruled out either. RSI is midrange and we are expecting a move tomorrow at 3:30AM ET.

Blake Morrow