EUR/JPY perking up again, looking to 128.00 resistance
- EUR/JPY has been consolidating below 128 the figure at the start of the week.
- Bears lurking for prospects back to 127.20.
At the time of writing, EUR/JPY is trading at 127.87 and higher early in the new trading day by 0.18%.
The cross travelled to a European open high of 127.97 but was unable to sustain the bid and drifted back to test bullish commitments at 127.64.
The mood was generally positive in Asia-Pacific at the start of the week, following the US stock market’s close at another record high Friday.
US Futures overnight pointed to a solid platform of risk-appropriate for Tuesday's major bourses as well which might be expected to keep Japan’s Nikkei 225 above 30,000 which it crossed for the first time since 1990 at the start of the week. In doing so, the yen could well find itself on the backfoot.
Importantly, Trump’s acquittal will allow Congress to focus on Biden’s USD1.9trn recovery plan which is expected to keep the euro underpinned due to US dollar weakness.
However, from a technical point of view, there is the downside to play for in the cross for the meanwhile, so long as 128 holds and price breaks 127.64.
EUR/JPY technical analysis
Prior analysis:
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Further to the prior analysis, EUR/JPY Price Analysis: W-formation forms as price meets resistance, the price has started to consolidated below 128, albeit within the bullish territory still.
Until the price break below the 20 moving average, there is nothing here to do for the bears with sights on the W-formations neckline.
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Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
