EUR/JPY analysis: yen eased, but remains strong

EUR/JPY Current price: 129.32

The EUR/JPY pair posted a modest intraday advance as the common currency gain traction in the American session, while the JPY traded with a soft tone on improved risk sentiment. Activity around the pair was limited, having been unable to trade outside Friday's range, leaving therefore a neutral stance in the short term. Further yen declines, however, seem limited, as US Treasury yields remained near recent lows. From a technical point of view, the pair has once again managed to bounce from a dip towards the 23.6% retracement of the latest weekly advance at 128.80, the immediate support. In the 4 hours chart, the 100 SMA has continued advancing, now standing a few pips below the mentioned Fibonacci support, whilst technical indicators hover directionless around their mid-lines, indicating limited buying interest around the cross.

Support levels:  128.80 128.40 127.95

Resistance levels: 129.50 129.85 130.30

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