EUR/JPY analysis: starting to look constructive, but 121.40 key
|EUR/JPY Current price: 120.58
The EUR/JPY pair soared to a fresh weekly high of 120.71 as the advance in US equities sent the JPY lower against all of its major rivals. Demand for USD-related assets re-surged after the new US administration announced an upcoming tax reform that will be unveiled in "the next two or three weeks," according to President Trump. US Treasury yields recovered from the multi-week low posted on Wednesday, with the 10-year benchmark standing at 2.39%. Data released in Japan during the past Asian session was quite encouraging, as seasonally adjusted core machinery orders in December rose by 6.7% from the previous month, and by the same percentage yearly basis, a sign that capital expenditure is picking up. From a technical point of view, the risk of a bearish extension have been reverted, although a stronger advance seems now limited, given that in the 4 hours chart, the price remains well below its 100 and 200 SMAs that maintain bearish slopes, whilst technical indicators have lost upward strength within positive territory. The pair needs to regain the 121.40 level to look more constructive during the following sessions, with scope then to test the 124.10 high posted mid December.
Support levels: 120.10 119.60 119.25
Resistance levels: 120.70 121.05 121.40
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.