EUR/JPY: stuck below key 50 weekly sma resistance

Currently, EUR/JPY is trading at 130.24, down -0.25% on the day, having posted a daily high at 130.63 and low at 129.84.

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EUR/JPY has been in the consolidation of yesterday's rally in the euro, when the cross met with the strong resistance of 130.50/60 area. While the euro is benefitting from domestic improvements in the wider economy, prompting a potentially hawkish bias from the ECB, the dollar has been crippled by the White House's dysfunction, further aiding the euro but also the yen. 

EUR/JPY levels

EUR/JPY Bullish W Pattern Marks The Possible Uptrend Continuation

Technically, the cross remains neutral in the 4 hours chart with a further test of the aforementioned resistance required and daily closes to confirm the possibility of an extension beyond YTD highs of 130.76, the 10th July high. A break there would be significant considering the location of the weekly 50 sma at 130.63. To the downside, analysts at Commerzbank explained that failure at last weeks low at 128.50 will alleviate immediate upside momentum and opens the uptrend at 128.18. "Below here lies the previous May high at 125.80 and offers additional support," added the analysts.