EUR/JPY analysis: advance continues on stocks´ recovery

Valeria Bednarik FXStreet

EUR/JPY Current price: 125.13

The EUR/JPY pair continued advancing, settling above the 125.00 threshold for the first time this week, but still shy of the multi-month high set last week at 125.80. The Japanese yen traded softly against all of its major rivals, as worldwide equities extended their recovery after last week sell-off, triggered by Trump's political scandals. Yields were also modestly higher, but well below their April peaks, also pressuring the Asian currency. From a technical point of view, the pair remains biased higher, both short and long term, although with limited upward momentum in the 4 hours chart, amid the limited intraday range seen this Wednesday. In the mentioned time frame, indicators head nowhere, but remain within positive territory, whilst the 100 and 200 SMAs keep advancing below the current level, with the shortest providing a strong support around 124.00.

Support levels: 124.90 124.50 124.00

Resistance levels: 125.40 125.80 126.25

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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