EUR/JPY: better bid on risk appetite and stabilized at 200 1hr sma

Currently, EUR/JPY is trading at 122.45, up 0.53% on the day, having posted a daily high at 122.83 and low at 121.71.

EUR/JPY has consolidated after support came in on the recent sell-off from 122.78. However, the cross remains in bullish territory, despite a weak euro. The greenback is in the driving seat while the Yen will suffer on risk appetite and US stocks performing strongly with the Dow just points away from the 20,000 psychological level.

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"Slightly longer term we would allow for gains to extend towards the 128.50/200 month ma," argued analysts at Commerzbank, adding, "The market should remain well supported on dips 120.93/121.71, last weeks low and the 20 day ma. This guards 118.45/ 21st July 2016 high and the 200 day ma at 118.41 and while above here it is immediately bid."

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EUR/JPY levels

With spot trading at 122.46 and above the 200 sma on the 1hr sticks at 122.44, we can see next resistance ahead at 122.83 (Daily High), 122.83 (Hourly 100 SMA), 122.84 (Daily Classic R1), 122.89 (Weekly Classic PP) and 123.29 (Yesterday's High). Support below can be found at 122.46 (Hourly 200 SMA), 122.39 (Hourly 20 EMA), 122.26 (Daily Classic PP), 121.82 (Daily Open) and 121.81 (Weekly Low).