• EUR/JPY reversal from three-week highs at 130.35 contained at 130.00.
  • The euro appreciates for the fifth consecutive day against a weaker yen.
  • The US/Japan yields' differential is hurting the yen across the board.

The EUR/JPY’s reversal from three-week highs at 130.35 seen earlier on Tuesday has been short-lived, as the pair found buyers at 130.00 psychological level to defend its near-term upside bias.

The Japanese yen, under pressure amid higher US yields

The solid advance on the US bond yields, with the benchmark 10-year note above 1.5% fuelled by the US Federal Reserve's signals pointing towards the end of the Quantitative Easing era, has been hurting the safe-haven Japanese yen across the board.

In that context, the common currency has taken advantage of a weaker yen, in spite of an energy crisis and the political uncertainty in Germany, which are dampening the Eurozone’s economic growth prospects, to post a five-day rally. The euro has appreciated about 1.75% over the last five days to breach the mentioned 130.00 level and approach two-month highs at 130.70.

EUR/JPY: Next upside target is 130.70

On the upside, above 130.00 psychological level, the next significative area would be at 130.70 (Sept. 3 and 8 highs and the 20-day SMA) then 131.05 (Jul. 14 high), and 132.30 (Jul. 1 high). On the contrary, a reversal below 130.00 might look for support at 129.75 (Sept. 28 low) and 129.40 (Sept 24 low).

Technical levels to watch

EUR/JPY

Overview
Today last price 130.26
Today Daily Change 0.38
Today Daily Change % 0.29
Today daily open 129.88
 
Trends
Daily SMA20 129.62
Daily SMA50 129.52
Daily SMA100 130.87
Daily SMA200 129.68
 
Levels
Previous Daily High 129.94
Previous Daily Low 129.48
Previous Weekly High 129.85
Previous Weekly Low 127.93
Previous Monthly High 130.42
Previous Monthly Low 127.93
Daily Fibonacci 38.2% 129.76
Daily Fibonacci 61.8% 129.66
Daily Pivot Point S1 129.6
Daily Pivot Point S2 129.31
Daily Pivot Point S3 129.14
Daily Pivot Point R1 130.05
Daily Pivot Point R2 130.22
Daily Pivot Point R3 130.5

 

 

 

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