FXStreet (Mumbai) – The cross in the EUR/JPY prolongs its recovery from fresh multi-month lows in the European morning and reached fresh session highs beyond 134 handle largely on the back of yen weakness versus the US dollar as risk-sentiment grips Europe.
EUR/JPY bounces-off 133 handle
Currently, the EUR/JPY pair trades 0.59% higher at 134.03, easing-off fresh session highs reached at 134.38. The EUR/JPY cross fights hard to reclaim 135.80-136 levels seen in the last week, with the cross recovering half of the slide witnessed post Thursday’s ECB’s downward revision of growth and inflation forecasts.
Meanwhile, persisting risk-on market sentiment amid firmer European indices, continues to boost the USD/JPY, translating in to strong gains for the EUR/JPY cross this session.
Looking ahead, the rest of the week is empty in terms of macro news, therefore investors will closely eye the developments in China, as well as the odds for the Federal Reserve to raise rates, with volatility expected to be higher, despite the latest bigger movements.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 134.38 (Today’s High) levels and above which it could extend gains 135 levels. To the downside immediate support might be located at 132.98 (Today’s Low) below that at 132.18 (Sept 4 Low) levels.
(Market News Provided by FXstreet)