- EUR / JPY retains a bullish bias in the short term, faces resistance ahead.
- Low volatility week end and markets closed.
The EUR / JPY is declining modestly on Friday, having hit a month-long high at 129.75. The euro failed to hold and is trading just below 129.50 heading into the US session on Friday.
The 129.50 zone remains key to the euro’s bullish aspirations. The hundred-day moving average that is passing through 129.75 can be added to this level. In case of leaving both levels behind, a return above 130.00 the EUR / JPY would be expected.
If still powerless at 129.50, then expectations for a pullback will go higher. Strong support is at 129.00. From falling below the next level to consider is the 20-day moving average, the last strong barrier before the December floor at 127.40. This moving average has changed direction and now looks bullish, reinforcing the short-term outlook in favor of the euro.
The advance of the crossing has two supports. On the one hand the rise of the EUR / USD and on the other, some weakness of the yen. In the case of the EUR / USD, it is on its way to having the best week in months and if it breaks above 1.1350 it could give the EUR / JPY an extra boost.
Regarding the yen, the rise in Treasury bond yields along with the recent advance in the equity markets, the less pessimism by Ómicron, contributed to weaken the Japanese currency, and therefore, support the cross. . If this scenario persists, the increases in the EUR / JPY could continue.
Technical levels
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