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EUR/JPY: Further recoveries likely - FXStreet

FXStreet (Bali) - EUR/JPY should find further buying interest should we see a setback towards the 137.00 area, with a break of 137.70 potentially extending the rate for the next target at 138.30/40, notes Valeria Bednarik, Chief Analyst at FXStreet.

Key Quotes

"Yen bearish momentum has overlapped EUR self weakness, with the EUR/JPY standing near its daily high set at 137.48. US yields surging to 2.5% support the advance in yen crosses despite the mild weak tone seen in stocks all through the day."

"The EUR/JPY technical picture shows a steady advance after the pair tested last August lows, suggesting some further recoveries moreover if 137.00 now attracts buyers. The 1 hour chart shows price extended above 100 and 200 SMAs, while indicators lose some upward potential near overbought levels."

"In the 4 hours chart however, momentum stands strong heading higher, with 100 and 200 SMAs both converging around 137.00 and reinforcing the strength of the static support. Further advances beyond 137.70 resistance should see the pair extending towards 138.30/40 price zone, these last months’ highs."

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