EUR/JPY analysis: flat, but yen stronger

Valeria Bednarik FXStreet

EUR/JPY Current price: 124.44

The EUR/JPY pair closed higher for a second consecutive week at 124.44, although this last, up by just 25 pips, as the pair seesawed between gains and losses without finding a direction, these last few days. The Japanese yen got some support as usual from US Treasury yields that remained near their recent lows. The 10-year note benchmark settled at 2.14% for the week, while the 30-year one ended at 2.71%. Limiting yen's gains was also the preliminary Nikkei manufacturing PMI, down in June to 52.0 from previous 53.1 and the expected 53.4. The pair presents a modest upward potential in its daily chart, having traded above a horizontal 20 SMA, currently at 123.90, whilst technical indicators aim modestly higher above their mid-lines, with limited momentum. Shorter term, and according to the 4 hours chart, the price is above all of its moving averages that anyway stand flat within a tight range, reflecting the absence of directional strength, whilst technical indicators have turned lower within positive territory, amid limited EUR demand.

Support levels: 123.90 123.65 123.20

Resistance levels: 124.90 125.35 125.80

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.

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