USDJPY: US$Jpy steady. EURJPY the big winner. Much higher levels ahead?

 US$Jpy had a choppy but sideways range today, either side of 124.00(123.7/124.67), with the main action being driven by the surge in EurJpy, which has broken cleanly up through the reverse head shoulder neckline at 137.00, – and as we said on the weekend, – could be headed for 147.85 (see EurJpy chart below).The  4 hour charts are still pointing lower and a retest of 123.75 area would not surprise, a break of which would then revisit 123.60 (23.6% of 118.88/125.05) and 123.15 (200 HMA), ahead of the next Fibo supports at 122.86 (38.2% of 115.85/125.05) and 122.70 (23.6% of 118.88/125.05).

The hourlies are currently flat and the topside looks likely to see sellers again at the recent 124.45 pivot and at the session high at 124.67, ahead of the 125.05 trend high.

Keep an eye out for the chance of the dollar building a short term Head/Shoulder top formation, which if it comes about, could take it back towards the 122.20 area. That is some way off at this stage.

The BOJ’s Kuroda is speaking today but the market will likely stay on hold until tomorrows US jobs data.

As with yesterday, while longer term traders will be looking to buy dips, I suspect that today, it might be one of looking for rallies towards 124.50 to sell into ahead of another look at 123.75, possibly lower.

Economic data highlights will include:

BOJ: Kuroda Speech.