EUR/JPY accelerates upside, jumps to 128.00

• The euro is having the best day in a month against the Japanese yen on the back of risk appetite.
• EUR/JPY breaks key technical levels, jumps to highest in 10 days.

The EUR/JPY accelerated to the upside during the American session on the back of a sell-off of the Japanese yen and amid a rally in Wall Street. As EUR/USD soared, USD/JPY remained flat havering near daily highs.

The S&P 500 hit fresh record highs while the US dollar resumed the downside across the board. EUR/JPY climbed to 128.04, hitting the strongest level since August 10. The pair remains near the highs consolidating most of the day’s gains.

EUR/JPY Key levels to watch

To the upside, resistance levels could be seen at 128.25 (20-day moving average), 128.50 (Aug 6 & 8 low) and 129.10. On the flip side, support might lie at 127.35, 127.15 and 126.75.

On a wider perspective, the pair is consolidating on top of 127.00, after breaking a range of several days. The move could signal that a bottom has been reached last week at 124.89.