EUR/JPY breaks above 125.00 and jumps to highest since mid-September
|- Euro soars versus yen boosted by the rally in EUR/USD above 1.2000.
- Yen drops across the board hit by risk appetite.
The EUR/JPY broke a key resistance area around 125.10 and jumped to 125.79, hitting the highest level since September 14. The pair climbed more than a hundred pips during the American session so far, boosted by risk appetite and by technical factors.
The rally in EUR/USD added strength to the euro. Also, the move higher in USD/JPY boosted further EUR/JPY. The yen remains under pressure as equity indexes in Wall Street reached record highs.
The combinations of risk appetite and also technical developments helped EUR/JPY break the key barrier located between 125.00 and 125.10 that capped the upside during October and November.
A daily close in EUR/JPY above 125.10 would suggest more gains ahead. The next strong resistance is seen at 126.15/20 and then then the 127.00 area. A retreat back under 125.00 would suggest the euro is not ready yet to more gains, pointing to a reversal.
Technical levels
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.