EUR/JPY fades a spike to 128.70

By FXStreet FXStreet (Mumbai) – The EUR/JPY cross extends its vertical rise in the European morning, having broken the Asian consolidation box seen around 128 handle.

EUR/JPY trims gains near 128.50

Currently, the EUR/JPY pair trades 0.39% higher at 128.52, retracing from fresh four-day highs of 128.69. The cross in the EUR/JPY caught a fresh bid tone over the last hours after the EUR/USD pair jumped 50-pips following the comments from the ECB policymakers cross wires noting that they don’t see need for easing in near-term.

While on the JPY side, the ongoing weakness in the yen versus the US dollar also support the upbeat sentiment around EUR/JPY. Meanwhile USD/JPY trades 0.20% to 117.90, unable to resist the 118 handle.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 129/129.03 (psychological levels & Jan 8 high), above which it could extend gains to 129.50/88 (Jan 5 High/ 20-DMA). To the downside, the cross finds immediate support at 127.93/76 (1h 50-SMA/ daily low), below that 127.43/40 (daily R1/ Jan 12 Low), could act as a major support.
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Source:: FX Street