EUR/JPY rallies in sync with USD/JPY, strongest since July

The bid tone behind the EUR/JPY cross remains intact in late-Asia, as the bulls continue to track the relentless rise in the USD/JPY pair amid optimism on Trump’s policies and a Dec Fed rate hike.

EUR/JPY: 118 handle on sight

Currently, EUR/JPY trades +0.22% higher at 117.68, hovering within a striking distance of four-month highs reached at 117.75 some minutes ago. The EUR/JPY cross sits at the highest levels since July 2016, largely on the back of the vertical rise seen in the USD/JPY pair to fresh half-yearly highs of 111.19.

While the bullish run in the spot is also backed by a better EUR/USD, as the main currency pair attempts a minor-recovery near 1.06 handle. Later today, all eyes remain on the ECB President Draghi’s speech for fresh incentives on the cross, as the economic calendar from both continents remains data empty for today.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 118 (round number), above which 118.48 (July high) could be tested. On the flip side, support is seen at 117.51 (daily pivot) that at 117.24 (5-DMA).