The Yen is under pressure given......>

EURO-YEN TECHS: The Yen is under pressure given risk-on sentiment that prevails.

- USDJPY survived a test of its bull channel support Friday, drawn off the Aug

26 low. The rebound in prices keeps the bullish outlook intact. Initial

resistance at 108.90 is under pressure, a break would open last week's high of

109.29, Oct 30. Clearance of this level would confirm a resumption of the

uptrend and open 109.93 and the channel top at 110.87.

- EURJPY is also looking constructive but for now remains within its 121.48 -

120.29 range. A break of 121.48 would confirm a resumption of the uptrend and

remove the existing technical threat that suggests the cross is vulnerable

near-term, given that on Oct 17 and 21 it stalled at its bull channel top, drawn

off Sep 3 low. Key will be whether resistance at 121.48 is cleared.

- A final note on EURJPY and looking at intraday USD based trend signals. USDJPY

and EURUSD 60-min trend signals point up. This suggests EURJPY has the potential

to be the main beneficiary under the current environment should both the USD

pairs push higher. Watch EURUSD resistance at 1.1179.

https://emedia.marketnews.com/mni_eurjpy_051119.pdf