- Rise in stocks keeps EUR / JPY buoyed.
- Beginning of presidential transition in the US stimulates buying of shares.
The EUR / JPY is rising for the second day in a row, racking up an advance of nearly 100 pips since the start of the week. The main factor behind the advance is being a positive sentiment in the markets, which favors the demand for riskier assets, and among currencies it favors the euro over the yen.
The price of the cross reached 123.96, the highest level in a week. Facing the American session, it remains in the zone of the maximums with the bullish tone intact.
In a broader perspective, from a technical point of view the EUR / JPY does not have a clear direction yet. It has been running tours around 123.50 since October. A return above 124.00 would strengthen the euro, but just a close above 125.00 would point to a bullish extension. and a possible floor at 121.50.
Downward, EUR / JPY’s first strong support now appears at 123.40. Below attention goes to 123.00. A close well below would point to more weakness ahead.
When it comes to fundamentals, US data will be released on Tuesday (consumer confidence, home prices and Richmond Fed). In addition, several officials from the Federal Reserve will speak, although in recent days these words have not had an influence on the market, which at this time is more focused on how the next US government will look like.
Technical levels
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