EUR/JPY rises toward 133.00 at 3-day highs

The euro continues to advance modestly against the yen. It is rising for the second day in a row as it moves off the weekly low it reached on Tuesday at 131.73. 

At the time of writing, EUR/JPY is trading at 132.82, the strongest level since Tuesday, gaining almost 40 pips for the day. The upside is being supported by a stronger euro and recently reached a fresh daily high following a move to the upside in equity prices in Wall Street. 

The Dow Jones opened in negative territory and during the last hour turned positive, approaching yesterday’s highs. The yen weakened amid risk appetite and pushed EUR/JPY toward 133.00. The short-term tone favors the upside but without signals of a strong move.  

Technical outlook 

The hourly chart shows EUR/JPY moving in an upward channel, with a key support at 132.40. A break of the mentioned level would remove the short-term bullish bias. The next support levels lie at 132.30 (daily low), 132.00 (Sep 12 & 13 high) and 131.75 (Sep 26 low / 20-day moving average). 

On the upside, the recovery of the pair could find resistance initially at 133.10, above an acceleration is possible targeting 133.40 and 133.75.