EUR/JPY analysis: at risk of plummeting only below 121.40
|EUR/JPY Current price: 122.81
The EUR/JPY advanced up to 123.71 this Monday, with the yen easing in thin Asian trading. The soft tone of European and American equities, however, fueled a recovery in the Japanese currency, also underpinned by US Treasury yields plunging. The 10-year benchmark, fell to 2.38% after closing last week at 2.42%, while the 30-year yield stands at 2.98% from previous 3.0%. Despite closing in the red, the pair has managed to post a lower low and a lower high daily basis, while holding within its latest range, which reduces chances of a deeper bearish move during the upcoming days. Nevertheless, and with the common currency weak and the JPY gaining ground, the upward potential seems better limited. Shorter term, and according to the 4 hours chart, the technical picture is neutral with technical indicators hovering around their mid-lines, and the price holding above a horizontal 100 SMA. The key support comes at 121.40, the 23.6% retracement of the latest bullish run, the level to surpass to confirm another leg lower.
Support levels: 122.60 121.90 121.40
Resistance levels: 123.10 123.50 124.05
View Live Chart for the EUR/JPY
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