EUR/JPY analysis: rising alongside with US yields
|EUR/JPY Current price: 124.96
The EUR/JPY pair closed the day little changed at 124.96, barely up daily basis as both currencies eased against the greenback in the American afternoon. Early demand for the EUR left a higher high and a higher low daily basis, leaving the dominant bullish trend firm in the background. The positive tone of equities was not enough to push safe-haven yen lower, but yields did the job, as the Asian currency finally eased after a US auction ended up with yields recovering ground.
Despite posting a fourth consecutive higher high, the pair held below 125.80, the 1-year high posted last week and a possible bullish target as long as retracements towards 124.00 keep attracting buyers. Short term, the 4 hours chart shows that the price is well above a bullish 100 SMA, while technical indicators hold within positive territory, although lacking upward strength. Above the daily high of 125.38, the pair has scope to retest the mentioned yearly high en route 126.60, the next relevant mid-term resistance.
Support levels: 124.50 124.00 123.60
Resistance levels: 125.40 125.80 126.25
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