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Forex pairs in this Article » EUR/USD (Bali) - Yen weakness is starting to be capitalized by the Euro, up over 40 pips on the day to 142.80 session highs, as buying in EUR/USD keeps the advance in EUR/JPY going.

ECB to determine next direction

Even after a low inflation reading out of the Euro zone on Tuesday, the European shared currency managed to surprisingly maintain a relatively high buying interest throughout the day, despite the data implies further pressure to act on more easing by the ECB.

Draghi has so far shown certain disbelief on the inflation under-performance being more than a temporary phenomenon. The ECB will meet on Thursday, and while no change in rates is expected, all eyes will be on the what Draghi telegraph to the market.

EUR/JPY technicals

From a technical standpoint, Valeria Bednarik, Chief Analyst at, had the following to say: "The hourly chart shows 100 SMA accelerated lower above current price, standing now as dynamic resistance around 142.90 while indicators head lower around their midlines. In the 4 hours, indicators completed their upward correction from oversold territory and stand around their midlines, losing upward momentum with latest range, but looking more supportive of an advance than of a slide."
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