EUR/JPY consolidates at 4-month highs, below 118.00

EUR/JPY is rising on Monday for the third trading day in a row and continues to hold a bullish bias. Today it is being supported by a correction rally of the EUR/USD. 

Testing 118.00

Earlier today, EUR/JPY reached 119.97, the strongest level since July. Afterward pulled back, finding support at 117.50. It was trading at 117.80, up 40 pips for the day and almost 200 pips on top of the level it had a week ago. 

Last week, the euro posted the third weekly gain in a row supported by a decline of the Japanese yen across the board. Rising US bond yields affected particularly the yen. EUR/JPY managed to climb despite the fact that EUR/USD printed 11-month lows. 

Technical levels 

To the downside, support could be seen at 117.50 (European session low), 117.30 (daily low) and 116.75 (Nov 18 low). On the upside, immediate resistance could be located at 118.00, 118.45 (Jul highs) and 119.00 (psychological). 

To learn more about this topic, check our video analysis.

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eur jpu from Tip TV Productions on Vimeo.