EUR/JPY: risk-on hurting the cross, stocks firm

Ross J Burland FXStreet

Currently, EUR/JPY is trading at 129.31, down -0.96% on the day, having posted a daily high at 130.71 and low at 129.05.

EUR/JPY is consolidating the steep decline from 130.76 highs to the aforementioned lows, with the euro taking a hit across the board while EUR/USD lost the 1.14 handle momentarily in the US early shift and London late afternoon cross over.

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This was a follow through of the shallow profit taking dip ahead of the Yellen testimony. All in all, the roller coaster ride over the pre-prepared text that Yellen read out was dollar and stock/risk-on friendly, keeping EUR/JPY under pressure. S&P 500 at a 2445.92 high, Dow at fresh 2017 highs 21,579.30.

EUR/JPY levels

EUR/JPY had reached the 200-week ma at 130.71 where the 200-week ma is also located. "Dips lower should find that the previous May high offers initial support at 125.80," suggested analysts at Commerzbank who argue that the cross stays bid above the 125.73 uptrends. "We suspect that it will hold the initial test of the 200-week ma as we have a 13 count on the 240-minute chart. Initial support is 129.82, the end of June high."

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.

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