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Forex pairs in this Article » EUR/JPY (San Francisco) - The EURJPY is consolidating the bullish breakout seen overnight, now ranging between 107.45 and 107.80 this afternoon in Asia as market participants remain sidelined ahead of the Euro zone GDP release for Q3 and ahead of the European Central Bank policy meeting later in the day. The ECB is widely expected to keep rates on hold at 0.75%, and traders will be scrutinizing the accompanying statement for clues about ECB President Draghi's position on cutting borrowing costs in the future.

EURJPY now stands at 107.70, which coincides with the 78.6% Fibonacci retracement level of the drop from 111.42 to 94.10. A break above April 20 high at 108 would inspire a bullish run to 108.50 (Mar 22 low), then to 109.00 (figure; Aug 19 2011 low). The downside offers support at 107.15 (Nov 26 high), 106.50 (May 2 high) and 105.70 (Dec 12 2011 high).
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