EUR/JPY rises above 138.00, 7-week highs

FXStreet (Buenos Aires) - The EUR/JPY surged to a fresh 7-week high of 138.36, as the Japanese yen maintain a weak tone all through the day. The pair is now aiming to close the day a few pips above its weekly 200 DMA at 137.80, which may encourage additional buying, keeping the downside limited for the EUR against other majors.

EUR/JPY technical view

“In the meantime, the 1 hour chart shows that the price accelerated well above its moving averages, with the 100 SMA crossing below the 200 SMA, reflecting the latest upward acceleration, although the technical indicators are retreating from overbought readings”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators maintain their positive bias, despite being in overbought levels, supporting a new leg south towards the 139.00 level for this Wednesday”.

Support levels: 137.80 137.30 136.90. Resistance levels: 138.40 138.90 139.50.