EUR/JPY halts 3-day decline, above 1h 100-SMA

By FXStreet FXStreet (Mumbai) – The EUR/JPY cross attempts a minor recovery this Wednesday, having taken out key resistance at 128.04 levels, the confluence of previous high and hourly 100-SMA.

EUR/JPY regains 128 handle

Currently, the EUR/JPY pair trades -0.24% higher at fresh session highs of 128.16, extending the recovery from 127.64 daily lows. The cross in the EUR/JPY keeps the bids as we progress towards the European open, and brings an end to the three consecutive days of declines as the weakness in the yen outweighs the losses seen in the EUR/USD pair.

The cross remains underpinned on the back of better risk sentiment towards the US dollar which continues to weigh both on the JPY and EUR. Meanwhile, the prices will continue to track the broader market sentiment and await the Euro zone industrial output data for fresh cues.

EUR/JPY Technical Levels

To the upside, the next resistance lies at 128.50 (Han 11 high & psychological levels), above which it could extend gains to 129.03 (Jan 8 high). To the downside, the cross finds immediate support at 127.81/74 (1h 20-SMA/ daily pivot), below that 127.44/40 (daily S1/ Jan 12 Low), could act as a major support.
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Source:: FX Street