EUR/JPY analysis: yields saved the day

Valeria Bednarik FXStreet

EUR/JPY Current price: 130.10

The EUR/JPY pair surged up to 130.58, its highest in two weeks, to settle around 130.10, as the yen weakened on BOJ's news. Two dissident Board members were replaced with Goshi Kataoka, and Hitoshi Suzuki, both more aligned with Governor Kuroda easing policy, somehow denting hopes for tapering in Japan. Furthermore, US Treasury yields rose sharply in the US session, with the 10-year note benchmark up to 2.31% from previous 2.25%. The technical picture is short-term positive, as in the 4 hours chart, the price settled above its 100 SMA, while the Momentum indicator aims north above its 100 level and the RSI indicator hovers around 60. The pair has topped at 130.76 this year early July, now the level to surpass to confirm additional gains ahead, although the market will likely wait for the Fed before taking decisions involving yen crosses.

Support levels: 129.80 129.25 128.80

Resistance levels: 130.30 130.75 131.30

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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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