EUR/JPY analysis: risk appetite leads the way higher

Valeria Bednarik FXStreet

EUR/JPY Current price: 124.97

The EUR/JPY pair surged to its highest in 4-weeks, flirting with the 125.00 level at the end of the US session, amid a weaker JPY. The Japanese currency eased early London, following a sharp decline in gold prices, which dragged the safe-haven currency lower against all of its major rivals, although losses remained limited amid the poor performance of US Treasury yields, which edged marginally lower this Monday. Japan has nothing to offer during the upcoming Asian session, which means its crosses will trade mostly on sentiment, with the scale lean towards the downside, should yields keep falling. Technically, the pair presents a modest positive tone intraday, given that in the 4 hours chart, the price has advanced far above its 100 and 200 SMAs, both still horizontal but well-below the current level, whilst technical indicators are aiming higher after consolidating within positive territory. The pair has a major resistance at 125.80, where the pair topped twice this year, and would need to break beyond it to confirm a sustainable recovery ahead.

Support levels: 124.40 123.90 123.65

Resistance levels: 125.35 125.80 126.30

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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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