• The EUR/JPY pair begins the Asian session in the right foot, advancing some 0.26%.
  • An upbeat market sentiment hurts safe-haven assets, like the Japanese yen and the Swiss franc.
  • EUR/JPY Technical outlook: The inverse head-and-shoulders chart pattern target is 129.40.

As the Asian session begins, the EUR/JPY advances during the session, up some  0.26%, trading at 128.54 at the time of writing. On Monday, the shared currency, despite closing in the red, recovered some of last Friday’s losses, bouncing off the daily lows at 127.48, up to reclaim the 128.00 figure, as the market sentiment improved throughout the weekend, on “positive” news regarding the omicron COVID-19 variant, first discovered in South Africa.

At press time, the market sentiment is upbeat, with all the Asian equity futures in the green, except for the Hang-Seng, losing  1.35%. In the FX market, mild risk-on market sentiment benefits risk-sensitive currencies, to the detriment of safe-haven ones, like the Japanese yen and the Swiss franc.

EUR/JPY Price Forecast: Technical outlook

The EUR/JPY 1-hour chart displays the formation of an inverse head-and-shoulders a reversal pattern with bullish implications. Furthermore, at press time, the EUR/JPY jumped off the confluence of the 50-hour simple moving average (HSMA) and the neckline, from 128.20s levels towards the November 29 high at 128.67.

In the outcome of breaking above the latter, the following target would be the 100-hour SMA at 128.79, followed by the 200-hour SMA at 129.00. A breach of that level would expose the inverse head-and-shoulders target, at 129.42.

EUR/JPY

Overview
Today last price 128.53
Today Daily Change 0.44
Today Daily Change % 0.26
Today daily open 128.09
 
Trends
Daily SMA20 130.29
Daily SMA50 130.51
Daily SMA100 130.08
Daily SMA200 130.59
 
Levels
Previous Daily High 129.34
Previous Daily Low 127.8
Previous Weekly High 129.6
Previous Weekly Low 127.8
Previous Monthly High 133.48
Previous Monthly Low 128.34
Daily Fibonacci 38.2% 128.39
Daily Fibonacci 61.8% 128.75
Daily Pivot Point S1 127.48
Daily Pivot Point S2 126.86
Daily Pivot Point S3 125.93
Daily Pivot Point R1 129.02
Daily Pivot Point R2 129.96
Daily Pivot Point R3 130.57

 

 

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