EUR/JPY Takes-Out Monday’s High, 124 Back on Sight?

EUR/JPY Takes-Out Monday’s High, 124 Back on Sight?

10 May 2016, 07:57
Roberto Jacobs

EUR/JPY Takes-Out Monday’s High, 124 Back on Sight?

The EUR/JPY cross extends its bullish run into a second day today, reversing almost a quarter of BOJ’s inaction-led slide, as the yen drops sharply across the board amid risk-on.

EUR/JPY drops on broad yen weakness

The EUR/JPY pair now rises 0.41% to 123.80, hovering close to fresh eight-day highs of 123.86 reached last minutes. The cross in the EUR/JPY maintains the bid tone in the Asian trades, extending the rebound staged in the previous session, mainly driven by the ongoing weakness in the Japanese currency against its American counterpart amid improving appetite towards riskier assets as most major Asian indices stage a solid rebound.

While the EUR/USD pair trades modestly flat, doing little to aid the upward streak seen in the EUR/JPY cross. While the EUR calendar remains absolutely data-empty, focus now shifts towards the US docket, with the only US JOLTS jobs openings data on the cards.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124 (round number/ post-BOJ highs) and from there to 124.72 (50-DMA). On the flip side, support is seen at 123.59/58 (10 & 20-DMA) below which it could extend losses to towards 122.72 (1h 50, 100 & 200-SMA).


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