The broad market revival, sparked by the potential for a Bank of Japan rate cut this week is helping fuel a EUR/JPY rally, a bounce in US equities and a rebound in emerging markets. The lone outlier of note is oil which still trades like a wet bag of poo, to use a technical term.
EUR/USD has bee dragged up grudgingly by the EUR/JPY rally and puts the range-top at 1.2585 back in focus. A sustained break of that level should see prices recover 2.5 cents or so, on a measured move basis.
Trendline resistance come in at the present 1.2570 level, as the chart shows, adding to resistance and confirming a breakout, if it comes.
