- EUR/JPY recovers from a brief correction and approaches 143.00 again.
- Japanese bond momentum fading.
- EUR/USD tests the upper limit of the current range, the breakout could trigger more gains in the cross.
The pair USD/JPY up for the fourth day in a row. In Asian time, the cross reached a maximum of 142.93, the highest level since December 20. It then pulled back to 142.11. The correction was brief. The correction was short-lived and returned to the upward path.
The 143.00 zone is on the radar. It is a round number and also where the 20-Day Simple Moving Average sits. A break above could open the doors to further gains. A failure at current levels could trigger a deeper correction, probably towards the strong 141.20 barrier.
The EUR/JPY pair is recovering after hitting 138.77 last week, the lowest level since late September. The yen soared after the Bank of Japan meeting, posting the biggest daily rise in years, and has pared those gains ever since.
On Tuesday, the yield on sovereign bonds soared, contributing to the weakness of the yen. On Wednesday, yields are flat, while equity markets are mixed. Commercial activity is moderate due to the holidays.
EUR/USD prices could affect EUR/JPY. The pair is testing the upper limit of the current range. The first attempt is followed by a setback that could weigh down the crossing. Conversely, a rally above 1.0670 would help EUR/JPY bulls.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
