EUR/JPY analysis: backed by EUR's demand

Valeria Bednarik FXStreet

EUR/JPY Current price: 121.43

The EUR/JPY pair got a boost from EUR's demand, recovering up to 121.99 this past week and settling around 121.40, its highest close since mid March. Beyond the initial decline on risk appetite at the beginning of the week, the Japanese yen held ground during most of the week, benefiting from soft US data and falling US Treasury yields, as the 10-year benchmark settled at 2.28%, over 11 basis points lower in the month. The daily chart for the pair shows that it settled above all of its moving averages, whilst technical indicators maintain their upward slopes near overbought readings, suggesting further gains are likely. Still, the current level is the core of its comfort zone ever since last November, and with Japan on holidays for most of this week, further sideways trading could be expected. Shorter term, the 4 hours chart presents a neutral stance, with indicators hovering around their mid-lines, although the price holding above their moving averages, leaning the scale towards the upside.

Support levels: 121.00 120.60 120.10

Resistance levels: 121.95 122.40 122.85

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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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