Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair trades at its highest since mid February, up to 127.44 during the American afternoon, as the common currency got a boost from Yellen’s wording.
Key Quotes:
“The Japanese yen suffered during the past Asian session, as PM Abe spoke before the Diet, dissipating rumors of a sales tax increase postponement, scheduled for April 2017. The Yen regained some ground against the greenback, but for the EUR/JPY the risk will remain towards the downside, as Yellen’s words sent stocks skyrocketing, something that should prevent the JPY from appreciating further.
Technically, the 1 hour chart for the EUR/JPY pair supports additional gains, given that the price is well above its 100 and 200 SMAs, while the technical indicators aim higher above their mid-lines. In the 4 hours chart, the technical indicators resumed their advances within positive territory and with the RSI indicator having corrected overbought readings, all of which supports a continued rally up to 128.60, a strong static resistance level.”
(Market News Provided by FXstreet)