EUR/JPY analysis: rally to extend beyond 128.20

Valeria Bednarik FXStreet

EUR/JPY Current price: 127.79

The EUR/JPY pair extended its advance up to 127.84, ending the day a few pips below the level, and at its highest since April 2016. Resurgent demand for the common currency coupled with yen's weakness, as the Asian currency was undermined by rising US Treasury yields, which surged to their highest in over a month intraday on hawkish central bankers. The macroeconomic calendar will remain empty in Japan with the pair then lead by bonds' yields and equities. Pressuring its highs, the 4 hours chart supports a continued advance ahead, as technical indicators resumed their advances within extreme overbought levels, whilst intraday retracements resulted in strong buying interest. March 2016 high of 128.21 is the immediate resistance, with a break above it favoring an advance up to the 128.60/80 region, where the pair presents multiple daily highs and lows between late 2015 and early 2016.

Support levels: 127.45 127.00 126.60

Resistance levels: 128.20 128.70 129.10

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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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