- Euro resumes bullish path against the yen on Monday.
- USD / JPY advance propels the cross, which looks closely at 130.00.
The EUR / JPY made new one-month highs at 129.82 and then had a small correction. After the start of the American session, the cross is close to the highs again, looking towards 130.00.
The advance of the cross has as a key factor behind the rally of the USD / JPY that already exceeded 114.70. In addition, equity markets remain bullish, which is often a positive factor for EUR / JPY.
The EUR / JPY could lose moment to see a pullback of the EUR / USD below 1.1300, while if it exceeds 1.1350, on the contrary, it could gain more momentum.
The bullish tone of the cross remains firm although it faces great resistance ahead, in the 130.00 area and at the current levels, which is where the 100-day average is passing. A close above, would point to more progress.
In case of a retracement, below 129.55 the next support is at the 129.20 area and then 128.80. At 128.45 is the 20 moving average that already shows a bullish direction.
With the advance of Monday, EUR / JPY again tests levels above the 20-week moving average. A close on it could give extra momentum, supporting the bullish setup.
Technical levels
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