- EUR / JPY is moving bullish on Wednesday, still with resistance to overcome.
- EUR / USD advance and rise in Treasury yields push the crossover.
The EUR / JPY rose on Wednesday before the American session to 128.62, reaching the highest level in a week. The cross remains in the highs zone with the bullish tone intact pushing higher.
Should it affirm above 128.50 / 70, the euro will have passed a significant resistance and would target 129.00 and possibly beyond. The aforementioned area has slowed the increases since last week and the break would be important for the crossing.
A return below 128.30 will become a negative signal for the EUR / JPY and would ratify the range rally between 128.50 and 127.50. A drop below 128.00 would point to a test at the 127.50 area. A confirmation below the latter would enable more lows.
The gains are supported by the extension of the bounce of the EUR / USD on Wednesday, ahead of Friday’s US inflation data and the Federal Reserve decision. In addition, the euro is favored by the rally of the EUR / GBP.
Another positive factor is that the recent rise in equity markets continues. Also, Treasury yields, in a volatile day, are rising, weakening the yen. The 10-year rate went from 1.42% to 1.48% in a few hours.
Technical levels
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