EUR/JPY highest close in 2 months

FXStreet (Córdoba) - The euro rose for the fourth consecutive day against the yen and posted the highest close since July 9. After falling to 135.80 last Friday EUR/JPY bounced to the upside, rallying more than 250 pips in 4 days.

The pair broke above 138.15 (September 10 high) and rose to 138.50. Then pulled back but found support around 138.10 and finished the day hovering around 138.35/40.

EUR/JPY technical outlook

“The 1 hour chart shows moving averages turning higher around 137.30 with 100 SMA approaching 200 one yet still below, while indicators stand directionless above their midlines”, says Valeria Bednarik, Chief Analyst at FXStreet. According to Bednarik the 4-hour chart shows technical readings maintaining a clear bullish bias that supports a break higher.