- EUR / JPY continues to recover as the yen tumbles over risk appetite.
- The euro gained 3.55% in the last five trading days against the yen.
EUR / JPY resumed higher on Tuesday and accelerated, climbing more than 150 pips to 121.62, the highest level since January 23. At the time of writing, it is trading at 121.30 / 35, consolidating most of today’s gains.
Since April low, EUR / JPY has risen 700 pips. A week ago, it rose more than 300 pips, supported by the improved sense of risk in the financial markets which boosted the USD / JPY and EUR / JPY at the same time.
During Tuesday’s US session, the EUR / USD stabilized after being unable to exceed 1.1200, but the USD / JPY continued to advance, also supported by technical factors, further stimulating the EUR. / JPY.
No fear of overbought readings
Despite the impressive rally, EUR / JPY continues to rise. It broke Tuesday above the 121.00 barrier and tested the next resistance, which is 121.60. If it consolidates above, the next target is 122.00.
A return to 121.00 should not be excluded. If the euro remains above, the uptrends will remain intact. Below 121.00, the next support levels could be 120.15 and 119.75.