EUR/JPY breaks higher from month long consolidation

Bid tone around EUR gathered pace in Asia following Friday’s exaggerated sell-off, thus leading to an upside break in the EUR/JPY cross from the month long trading range of 114.03-112.36.

Tests 50-DMA

Cross ran into 50-DMA resistance at 114.46 levels after having rebounded from the low of 113.92 levels the rise has been largely fuelled by EUR/USD recovery from 1.1175 to 1.1202. Moreover, the drop in the EUR/USD pair on Friday was slightly exaggerated.

Meanwhile, Dollar-Yen pair gathered pace as well, thus adding to the bid tone around EUR/JPY cross. The  EUR/JPY pair was last seen trading around 114.38 levels.

EUR/JPY Technical Levels

Acceptance above 114.46 (50-DMA) could yield a test of 115.50 (June 16 low). A violation there would expose 117.11 (61.8% of Brexit day drop). On the lower side, breach of daily low of 113.92 would open doors for a drop to 112.787 (Aug 24 low) and 112.22 (23.6% of Brexit day drop).