EUR/JPY: Levels, Ranges, Targets

EUR/JPY vital break points today are located from 119.03 to 121.10 for a 207 pip range. This range is offered and defined not only by the BOJ and ECB but through EUR/JPY and JPY/EUR. Under this dual view, EUR/JPY like its two counterparts USD/JPY and GBP/JPY are trading around most important levels rather than in threat of range breaks. For EUR/JPY, a range break below occurs 118.35 and above at 120.91 then 123.29. For JPY/EUR, below range breaks occur at 114’s and miles upon miles of upside to 125’s. Editorially, the imperative to view, understand and trade any JPY pair and relationships is to factor JPY to its 6th decimal place or the forecast will be miles off target.
How vital is 121.10 is a break if seen would meet stiff resistance at 121.24. Rather than view this wide swath of daylight, EUR/JPY is looking at solid resistance and sell points at 120.24, 120.42, 120.62 and 120.67. For today, most vital break points are located from 120.24 to 119.67 and 119.63. Below targets upon a 119.67 break takes EUR/JPY to 119.53, 119.48, 119.33 and 119.30 then 119.18. I wouldn’t marry 119.18 due to the close proximity to 119.03. In the 119.30 area is the longs points.
EUR/JPY challenges 120.24 upon a break of 119.90 then the danger zone untouchable area exits from 119.90 to 120.24.
The overall problem in EUR/JPY is not only does it trade around significant break points but upside trends are absent until breaks are seen from 121.93 and 121.57. Then below trends begin from 118.95 and 117.42. EUR/JPY like its counterpart pairs USD/JPY and GBP/JPY are stuck inside massive and dangerous neutral zones. Neutral zones lack definition to trends and offer much market uncertainty.
But in the EUR/JPY V JPY/EUR relationship, its the EUR side that remains top heavy. Most top heavy, neutral zone and market uncertainty is explained by EUR/USD Correlations to EUR/JPY at minus 90% and + 90 to USD/JPY. This means EUR/USD lost its ownership to EUR/JPY and EUR/JPY belongs to USD/JPY. Correlation informs overall, markets still trade and reside in risk off mode which is a USD positive environment.