EUR/JPY to get checked on EU political concerns and DXY consolidation?

Currently, EUR/JPY is trading at 119.65, up 0.78% on the day, having posted a daily high at 119.80 and low at 118.50.

EUR/JPY has relished in the dollar's strength, taking advantage of a strong USD/JPY and broke the resistance at 118.45/66 that was made up of the July peak and the 200 day moving average. USD/JPY consolidates at 7-month highs

This is highly bullish and puts 120.00 on the map, but first the cross need to overcome the 2014-2016 downtrend at 119.58 with conviction by breaking 119.80 resistance. The euro is at risk to the political concerns that are a dark cloud over the EU and the dollar could be in for some consolidation that could expose the yen for some profit taking and cap the cross. The Fed will be a key driver for markets in middle of Dec and the possibility of the ECB's QE extensions in the new year will be a strong catlyst for EUR/USD.

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EUR/JPY levels

Current price is 119.66, with resistance ahead at 119.79 (Daily Classic R2), 119.80 (Daily High), 120.06 (Weekly Classic R3), 120.57 (Daily Classic R3) and 131.83 (YTD High). Next support to the downside can be found at 119.27 (Daily Classic R1), 119.24 (Hourly 20 EMA), 119.02 (Yesterday's High), 118.79 (Weekly Classic R2) and 118.75 (Daily Open).