EUR/JPY hits 1-year highs

EUR/JPY jumped to 124.53, hitting the highest level in a year, boosted by a decline of the Japanese yen in the market and despite a decline of EUR/USD below 1.0900. 

EUR resumes rally after short-lived correction

Yesterday the pair opened higher following the French presidential elections but it quickly closed the gap and dropped to 122.90. The 123.00 handle contained the decline and during the second half of the American session the pair moved off daily lows, ending the bearish correction. 

Today, it remained steady during the Asian session and gained momentum on European hours when it started to trade again above 124.00. Currently, the pair trades at 124.25/30, up 60 pips from yesterday’s closing price, headed toward the highest close since April 2016 and the eight daily gain out of the last nine days. 

From a fundamental perspective, the pair has been supported by rising US bond yields. Today the 10-year rose above 2.40%, the highest since March. 

Technical levels 

Immediate resistance to the upside is seen around daily highs at 124.50, followed by 124.75 (Apr 25, 2016 low) and 125.00. On the downside, support might be located at 124.10 (American session low), 123.85 (Asian session high) and 123.60/65 (daily low).