EUR/JPY Rising Steadily, 122.00 Holds The Key

Key Highlights

  • EUR/JPY gained bullish momentum above the 120.00 and 121.00 levels.
  • A crucial rising channel is in place with support at 121.10 on the 4-hours chart.
  • EUR/USD is trading well above the 1.1220 and 1.1250 support levels.
  • GBP/USD surpassed the 1.2550 resistance level.

 

EUR/JPY Technical Analysis

The Euro started a steady rise after it surpassed the 120.00 resistance against the Japanese Yen. EUR/JPY broke the 121.00 resistance and traded to a new monthly high.

Looking at the 4-hours chart, the pair traded close to the 122.00 resistance and a high was formed near 121.96. The pair settled well above the 121.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It is currently correcting lower, and recently tested the 50% Fib retracement level of the upward move from the 120.60 low to 121.96 high.

On the downside, there is a major support forming near the 121.10 and 121.00 levels. There is also a crucial rising channel in place with support at 121.10 on the same chart. The trend line support is close to the 61.8% Fib retracement level of the upward move from the 120.60 low to 121.96 high.

It seems like there is a strong support forming near the 121.00 level and the 100 SMA. If the pair breaks the 121.00 support, there is a risk of more downsides towards the 120.60 and 120.20 levels.

On the upside, there is a major hurdle forming near the 122.00 level. A successful break above the 122.00 level could open the doors for a sharp rise towards the 122.60 and 122.80 levels in the near term.

Overall, EUR/JPY is trading nicely in a positive zone unless there is a break below 121.00. Similarly, EUR/USD is trading well above the 1.1220 and 1.1250 support levels.

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