EUR/JPY analysis: pressuring highs, helped by yields

EUR/JPY Current price: 124.33

The EUR/JPY pair closed marginally higher, confined, however, to the upper end of Friday's range. Both currencies edged lower amid broad dollar's strength, living the cross with little to offer to speculative interest. The Japanese yen eased against all of its major rivals, hit by poor local trade balance figures released at the beginning of the day, showing a large deficit of ¥203.4 billion, far below the forecasted surplus of ¥76.0B. Both, imports and exports advanced, although the last, missed market's expectations. Further pressuring the JPY were US yields, modestly higher on the day. The 4 hours chart shows that the price holds above its 100 and 200 SMAs, although the shortest stands below the largest with a modest downward slope, while the Momentum indicator retreated within positive territory, rather reflecting the absence of follow-through than suggesting a bearish move ahead. The RSI indicator in the mentioned chart holds flat around 61, keeping the risk towards the upside. Still a break beyond its daily high of 124.50 is required to confirm some further gains for this Tuesday.

Support levels: 123.70 123.20 122.80

Resistance levels: 124.50 124.90 25.35

View Live Chart for the EUR/JPY

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