FXStreet (Guatemala) – EUR/JPY has made a strong rally from below the hourly 50 SMA yesterday and went on to breach the 134 handle marking a high of 134.38 in Europe.
EUR/JPY benefited on a rally in stock prices in Europe after a down day in the Nikkei but the rest of the Asian stocks started to rip on the turn of the Europeans coming to the table. EUR/JPY was leading the way but then USD/JPY took over and rallied over 120 pips back on to the 120 handle supporting the EUR/JPY’s break. Risk is dictating the price in the pair but that type of sentiment is changing everyday. However, in the US S&P futures are 1.44% up at time of writing while S&P index is currently up 1.58%, underpinning risk appetite.
EUR/JPY: downside pressures diminishing
EUR/JPY’s key upside levels are 133.70 support and 134.70 (200 SMA hourly) resistance. while the cross remains in this vicinity, the immediate downside pressures are relieved.
(Market News Provided by FXstreet)