EUR/JPY rises further and tests resistance at 122.60
|- Euro heads for highest close versus the yen since June 11.
- Rises further during the American session as the Euro climbs across the board.
The EUR/JPY constantly rose during all Wednesday supported by a decline of the Japanese yen across the board. However, the latest leg higher was boosted by an intraday rally of the Euro across the board.
The yen is among the worst performers weakened by an improvement in risk sentiment and by higher US yields that moved off lows. Comments yesterday from Federal Reserve officials, including Jerome Powell, tempered rate cut expectations and equity markets rose modestly today, recovering some of Tuesday’s losses.
The Euro gained momentum during the London fix and climbed on the market. EUR/USD lead by rising to 1.1390 and over the last hour lost momentum and pulled back modestly. Also, the strength in EUR/JPY eased. The pair peaked at 122.60 and as of writing trades at 122.55, near the highs, consolidating a daily gain of almost 80 pips.
The resistance at 122.60 capped the upside so far. If the Euro breaks and holds on top, it could target 122.90. The short-term bullish bias is likely to remain intact as long as price stands above 122.40.
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