EUR/JPY retreats from 1-month highs but still holds to daily gains

EUR/JPY moved away from daily highs but is still trading more than 50 pips above Friday’s closing price boosted by risk appetite. 

The decline in the EUR/USD pair, that dropped to 1.1025 was more than offset by the jump in USD/JPY that climbed above 104.00. The week started with gaps across the board in most yen crosses. The FBI said during the weekend that new emails won’t lead to charges against Hillary Clinton and triggered a decline of the yen in the market. Risk appetite remained strong during all day, keeping the yen weak. 

EUR/JPY rejected from above 115.60

The pair surged to 115.89 during the Asian session and then pulled back. On hours of the American session, it continued to decline and dropped to 115.25. It was trading at 115.35, far from the highs but still up for the day. 

The euro was again rejected from above the 115.50 handle but on a wider perspective stills hold a bullish tone. In order to open the doors to more gains, it needs to consolidate significantly on top of 115.00. The next medium-term resistance could be seen around 116.30/50 (September and October highs). 

To the downside, below 114.40 (20-day moving average) the yen could gain moment. The key resistance could be seen around 113.00/10 (uptrend line from July lows).