European Central Bank President Draghi was certainly optimistic on inflation overnight!
Draghi’s tone has given the market hope that he will taper the central bank’s monetary stimulus and this in turn has sent the Euro forex pairs higher across the board.
With EUR/USD encountering resistance in the form of previous heavy chop (I don’t really know how else to describe it. Take a look yourself), I have instead turned my focus to EUR/JPY and the double top level that we spoke about on the blog a couple of weeks ago.
EUR/JPY Daily:
BOOM! Yep, no resistance level is stopping that freight train from rolling straight through.
I’ll let you zoom into the intraday charts on your own MT4 platform, but see how after the big bullish push, price has just traced sideways rather than pulling back? This is extremely bullish price action and if Draghi doesn’t backtrack, then any short term pullbacks could be seen as juicy buy signals.
