- Euro breaks key resistance against the yen, although it later gave up part of the gains.
- EUR / JPY has been trading in the high zone since October 2018.
EUR / JPY firmly broke 130.60 and jumped to 130.96, reaching its highest level in two and a half years. After this, it lost momentum and fell back from the peak, slashing gains. It is trading around 130.65, up about 50 pips so far this day.
The cross’s advance came after the EUR / USD hit week highs above 1.2050 and along with the USD / JPY bounce to 108.55. With the advance of the European session, the rally of both pairs moderated, favoring the decline of the EUR / JPY.
A negative factor for the crossing is being the fall of the stock markets in Europe and of the futures of Wall Street. The main indices point to a negative opening with losses on average of 0.40%.
With no US data ahead, the focus will continue on Wall Street and the bond market. Volatility could remain high considering where several of the major currency market pairs are trading.
From a technical point of view, EUR / JPY is struggling to hold above the 130.60 area, which is a relevant level. A sharp drop below could point to a reversal, while if it continues above, the euro will continue to target 131.00, with a strong bullish tone.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
