EUR/JPY: Solidly bid, eyes 4-day high
|- The JPY is under pressure, tracking the return of risk-on in Asia.
- EUR/JPY clocks four-day high, but still stuck in a trading range defined by 200-day MA and 100-day MA.
The EUR/JPY pair rose to a four-day high of 132.96 in Asia, tracking the uptick in the S&P 500 futures and Asian equities.
As of writing, the currency pair is trading above 132.90. Meanwhile, the S&P 500 futures are up 0.12 percent. Also, major Asian indices are reporting gains, for instance, stocks in Australia and New Zealand are up 0.6 percent and 0.3 percent, respectively. Hong Kong's Hang Seng has added 0.75 percent.
Awaits range breakout
The pair has been wedged between the 100-day moving average (MA) and the 200-day MA since April 13. An upside break - a move above 133.04 (100-day MA) would open the doors to 133.85. On the other hand, a downside break - a move below 132.23 (200-day MA) could yield a pullback to 131.42 (target as per the measured height method).
EUR/JPY Technical Levels
A close above 133.04 (100-day MA) would signal a continuation of the rally from 128.94 and allow a rally to 134.13 (Jan. 30 low) and 134.23 (61.8 percent Fibonacci retracement). On the downside, a move below 132.66 (session low) would allow a pullback to 132.25 (10-day MA) and 132.00 (psychological support).
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