EUR/JPY analysis: challenging December 2016 high

Valeria Bednarik FXStreet

EUR/JPY Current price: 123.90

The EUR/JPY pair closed at its highest since mid December 2016, as demand for the common currency coupled with a weaker JPY. Hopes that the Trump administration would boost growth and inflation late last year, sent the pair up to 124.09, with the pair stalling a couple of pips below it last Friday. The Japanese yen edged lower on Friday, as a strong US employment report fueled stocks markets, while hopes that Macron will win French elections further weighed on the safe-haven currency and boosted demand for the common currency. The pair has advanced for a third consecutive week adding roughly 1,000 pips in that period, which resulted in daily indicators reaching extreme overbought territory. Nevertheless, none suggests upward exhaustion at the time being, and a break through the mentioned December high may result in additional gains at the beginning of the week. In the 4 hours chart, technical indicators have turned horizontal, the Momentum within positive territory and the RSI around overbought levels, whilst the 100 SMA crossed above the 200 SMA far below the current level, maintaining the risk towards the upside, despite the lack of upward momentum.

Support levels: 123.65 123.10 122.60

Resistance levels: 124.10 124.50 124.95

View Live Chart for the EUR/JPY

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.

GBP/USD drops to multi-week lows below 1.3300

GBP/USD sets aside Friday’s uptick and breaches below the 1.3300 yardstcik on Monday to hit new multi-week troughs. Falling crude oil prices following a pause in the Middle East conflict in combination with the recent soft reading in UK inflation appear to play against any BoE tightening ahead of the bank’s event later in the week.

EUR/USD meets support near 1.1370

EUR/USD fades the initial bull run past 1.1400 the figure, deflating toward the 1.1370 zone on Monday. That said, the pair reverses two daily drops in a row on the back of the irresolute price action in the US Dollar, at the time when investors continue to closely follow developments from the Middle East conflict. Next on tap is the release of the US Consumer Confidence gauge by the Conference Board.

Gold eyes $4,050 on bullish USD as traders look to FOMC policy meeting

Gold slides back closer to $4,050 during the Asian session on Tuesday amid a bullish US Dollar. The downside seems limited as traders might opt to wait for the outcome of a two-day FOMC policy meeting on Wednesday. Furthermore, a pause in US-Iran hostilities led to a slump in crude oil prices, easing inflationary concerns and tempering bets for Fed rate hikes. This holds back the USD bulls from placing aggressive bets and should act as a tailwind for the non-yielding bullion.

Ethereum: BitMine buys back over 6 million shares, scoops 10K ETH

Ethereum treasury firm BitMine Immersion Technologies increased its share buybacks last week while scooping extra tokens into its ETH stash. The Las Vegas-based firm bought back 6.1 million shares of its common stock last week, following a 5.5 million share purchase the prior week.

Neither Hormuz nor Oil at $120: Why Japanese bond yields are the real market threat

While geopolitical headlines continually send traders rushing to the Oil charts, history shows that the biggest market moves often begin when liquidity disappears, not when crude spikes. Rising bond yields, particularly in Japan and Switzerland, threaten to trigger the unwinding of one of the largest leveraged trades in financial history.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.