EUR/JPY extends strong up-move beyond 200-DMA

The EUR/JPY cross maintained its strong bid tone for the sixth straight session and is now building on to its gains beyond the very important 200-day SMA.

Currently trading at five-month highs, around mid-119.00s, the cross continues to benefit from the relentless selling pressure surrounding the Japanese Yen. Adding to this, not so disappointing German IFO business climate is further supporting the bid tone around the EUR/JPY cross.

Meanwhile, the prevalent cautious sentiment around European equity markets has failed to extend any support to traditional safe-haven currency, Japanese Yen, and hinder the pair's ongoing up-surge. 

From technical perspective, the cross has decisively moved above 200-day SMA for the first time in 2016 and the current momentum seems strong enough to continue boosting the cross in the near-term. However, near-term overbought conditions (RSI >70) warrants some cautiousness at higher levels.

Technical levels to watch

From current level, the up-move could get extended towards 119.85 resistance above which the cross seems all set to surpass 120.00 psychological mark resistance and aim towards 120.75-80 resistance (June 23 closing high). On the downside, 119.00 round figure mark now seems to protect immediate downside, which is followed by support at 200-day SMA near 118.70-65 region and 118.50 support (session low).

To learn more about this topic, check our video analysis