EUR/JPY intermarket: let's get long here on Yen weakness and US yields/stocks back in play?

Currently, EUR/JPY is trading at 120.80, up 0.18% on the day, having posted a daily high at 121.20 and low at 120.61.

EUR/JPY bulls are suffering the strength in the yen despite stocks reaching the top of their channels on Wall Street. There could be an opportunity on the bid in EUR/JPY once EUR/USD finds some traction and the cross catches up with reality elsewhere on an Intermarket basis. 

USD/JPY rebound could extend to 114.50 – UOB

However, technically, there is a double top and hard resistance in the region between 121.20/30 area that if broken could be the last call for the 122 handle and the start of the month's highs. We have the major benchmarks in the Dow and S&P 500 at all time highs and USD/JPY on the bid through onto the 114 handle again as US yields take off to 2.45 as the Trumpflation theme returns. (Trumpflation 2.0: Back with a vengeance? - ING)

EUR/JPY levels

EUR/JPY between 121.50-122.06 could be a hard resistance as being an area of moving averages and cloud. "But key near-term resistance is the 6-week downtrend at 123.17 and this is our near term target. The top of the range lies circa 123.71/124.08 (15th Dec high). Above 124.08 lies the 124.77 38.2% retracement (of the move down from 2014) and the 125.11 2015-2016 resistance line, is expected to act as critical resistance/break up point," explained analysts at Commerzbank. To the downside, the analysts explained that below 119.70/30 would introduce scope to the base of the cloud at 118.68/35 and the 50% retracement of the same move. "This is stronger support and should contain the downside."