EUR/JPY analysis: looking for an extension up to 122.00

Valeria Bednarik FXStreet

EUR/JPY Current price: 120.94

The Japanese yen plunged to multi-month lows against its major rivals, with the EUR/JPY rallying up to 121.03, its highest since June 23rd when hopes that the Brexit referendum was going to result in a "stay" victory, sent the pair up to 121.99. US stocks rallied to fresh record highs with the energy-related sector leading the way s crude oil prices added over 8%. During the upcoming Asian session, the pair may continue advancing, as the yen will likely remain under pressure due to rallying equities. Short term, the 1 hour chart shows that the price trades measly 10 pips below the mentioned high, with technical indicators looking exhausted to the upside within extreme overbought territory, although given that the pullback has been quite shallow, the risk remains towards the upside. In the 4 hours chart, technical indicators maintain their bullish slopes within overbought territory, while the price has advanced further beyond its 100 and 200 SMAs. Retracements down to previous November high at 120.15 will probably be taken as buying opportunities, while an upward acceleration beyond 121.20 will likely see the pair testing the 122.00 level this Thursday.

Support levels: 120.60 120.15 119.75

Resistance levels: 121.20 121.60 122.00

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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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