Forex: EUR/JPY capped below key Fibo area ahead of Eurogroup and BoJ

FXstreet.com (Barcelona) - EURJPY is currently at 103.84, slightly above previous weekly close Friday around 103.60, knocked down last from fresh 3-week highs by the Tokyo open at 104.10. The Nikkei index is adding a +1.45% gain today in first half hour of trading to previous +3.62% advance in last 2 days, since general elections were called late Wednesday in Japan.

The cross keeps finding strong resistance below the 61.8% Fibo retrace at 104.55 of previous daily down leg from 2012 highs around 111.20 by late March. Same thing happening for USDJPY pair, now off recent session highs at 81.58, highest since late April 2012. With Eurogroup meetings to be held on Tuesday and earlier on BoJ meeting to take place in Japan, many analyst are calling for range trading ahead of these events.

Immediate resistance to the upside for EURJPY cross shows at recent session and 3-week highs 104.07, followed by Oct 18 highs at 104.18, and Oct 23 highs/61.8% Fib at 104.61. To the downside, nearest term support lies at Sept 19 highs/current weekly opening price 103.62, followed by Nov 07 highs 103.42, and Friday's lows at 103.03.