Forex: EUR/JPY pushing thru 16-month highs, capped below 113.50

FXstreet.com (Barcelona) - EURJPY is currently a generous +1.24% higher from previous Monday's close on both Yen weakness and Euro strength, last at 113.17, off recent fresh 16-month highs at 113.40, up +1.85% for the week. "Bulls still in complete control and no sign of any topping formations developing," FXWW founder Sean Lee says, adding: "I'd expect dips to be limited during Asian trade to the previous highs near 112.50/60. Sell orders are reported near 114.00 so I'd use that as my topside target today."

According to FXMarketAlerts Team: "Current strength is not supported by bear-divergence appearing on daily RSI-14 and expect profit-taking on longs to set in and inspire corrective pullback during intraday trading," the analysts note. Yesterday's BoJ minutes showed that "the nine-member board was pondering policy options even before Abe turned up the heat," Reuters reported.

Immediate resistance to the upside for EURJPY shows at recent 16-month highs 113.40, followed by July 22 2011 highs at 113.57, followed by June 24 2011 lows at 113.72, and March 28 2011 lows at 114.16. To the downside, nearest term support lies at Dec 19 highs 112.51, followed by Dec 20 highs at 112.16, and Monday's highs at 112.01.