Societe Generale Research discusses EUR/USD and EUR/JPY tactical views in the near-term.
“EUR/USD has broken out of its 1.13-1.15 range, a move which came as the USD/CNH rate fell and just before the (positive) end of trade talks was confirmed. The euro’s only independent sources of strength are valuation (against the dollar, not in trade-weighted terms), and positioning. It took a long time to break 1.15; it may take a while to break 1.16 too.
EUR/JPY retraced neatly to 125 (the May and August lows) and going short here with a stop just above 1.25 looks appealing,” SocGen notes.