• On Thursday, the EUR/JPY rallied 120-pip above 129.00
  • The market sentiment is upbeat, with global equity futures indices posting gains.
  • Evergrnade’s woes fade, but caution is warranted.

The EUR/JPY bulls take a breather. On Thursday, the pair posted a 120-pip rally, printing a new weekly high at 129.55, recording almost a 1% gain on the day.  Early in the Asian session, the EUR/JPY is trading at 129.50, barely down 0.02%, at the time of writing.

The market mood is upbeat. Major Asian equity futures indices are up, except for the Topix, which is falling 0.07%, while European and US futures are posting gains. The British pound and the euro are the strongest currencies in the FX market, while the US Dollar is the weakest across the board. 

China’s Evergrande worries are fading.  The real-estate company supposedly would pay the interest in the yuan-denominated bond coupon. However, an article in the WSJ raised investors’ concerns about the possibility of a negative to pay the interest in US dollar-denominated debt bonds, leaving international investors adrift.

EUR/JPY Technical Analysis

Daily chart

The EUR/JPY uptrend move was capped by the confluence of the 50 and the 200-day moving average (DMA) around 129.51. A daily close above the latter would support the bullish bias in the EUR/JPY. In case of that outcome, the EUR/JPY bulls will find their first resistance level at the downslope trendline around the 130.00-20 range. The following supply zones would be the September 8 swing high at 130.69, followed by the psychological 131.00.

On the flip side, failure at 129.51 could pave the way for further losses. The first support would be 129.00. A break of the latter could push the cross-currency towards the key demand levels, being July’s 20 low at 128.59, the first hurdle on its way towards 128.00.

The Relative Strength Index is at 51, aiming higher, supporting the bullish bias.

KEY TECHNICAL LEVELS TO WATCH

EUR/JPY

Overview
Today last price 129.52
Today Daily Change -0.02
Today Daily Change % -0.02
Today daily open 129.54
 
Trends
Daily SMA20 129.6
Daily SMA50 129.51
Daily SMA100 130.91
Daily SMA200 129.64
 
Levels
Previous Daily High 129.55
Previous Daily Low 128.31
Previous Weekly High 130.2
Previous Weekly Low 128.61
Previous Monthly High 130.42
Previous Monthly Low 127.93
Daily Fibonacci 38.2% 129.08
Daily Fibonacci 61.8% 128.78
Daily Pivot Point S1 128.71
Daily Pivot Point S2 127.89
Daily Pivot Point S3 127.46
Daily Pivot Point R1 129.96
Daily Pivot Point R2 130.38
Daily Pivot Point R3 131.2

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures