EUR/JPY Tops Near 124.40, Pulls-Back Below 124.00 Handle
As the Japanese currency, Yen, continues to slide across the board, the EUR/JPY pair extended its bullish momentum to 124.40 before retracing a bit to currently trade tad below 124.00 handle.
On
Tuesday, Japan's finance minister Taro Aso reiterated his comments on
Monday that the ministry was ready to step-in and weaken the nation's
currency if moves were volatile enough to affect country's trade,
economic and fiscal policies.
The pair has did manage to clear
its immediate resistance near 124.00-124.15 area, marking 23.6%
Fibonacci retracement level of 132.30-121.68 downfall. However, with
hourly RSI already indicating near-term overbought conditions, the pair
seems more likely to consolidate or witness a minor pull-back before
resuming its near-term upward trajectory.
Technical levels to watch
Corrective
move back below 124.00 handle should now find immediate support at
20-day SMA near 123.55-50 region. Weakness below this immediate support
seems to get extended towards an important horizontal support near
123.20-15 horizontal zone. A decisive break back below 123.20-15 support
might negate the bullish bias and drag the pair back below 122.00
handle, towards retesting its recent lows support near 121.70-65 area.
Meanwhile
on the upside, sustained move above 124.00-15 resistance zone should
assist the pair towards 50-day SMA resistance near 124.75-80 area. A
follow through buying interest above 50-day SMA now seems to assist the
pair to reverse last week's BoJ inaction led slide.
