EUR/JPY: headed towards 134.32/58?

Currently, EUR/JPY is trading at 132.40, up 0.19% on the day, having posted a daily high at 132.52 and low at 131.86.

EUR/JPY is having a positive day with the risk associated with the activity in the yen have subsided for the meantime.  Wall Street was closed today so there have not been any correlations but the euro has bounced back and taken out the 200 SMA on the hourly sticks at 1.1750 while the yen has remained flat within a very narrow range. 

Key points for the day - Lloyds Bank

Meanwhile, Catalonia's standoff with Madrid continues, as noted by analysts at Brown Brothers Harriman.  "It is if the collective breath is being taken.  Will Catalonian leaders declare independence?  If they do not,  have the popular passions and expectations been so aroused as to render the situation controllable?   The brinkmanship tactics require going to the brink, and the brink is at hand.  Investors seem to expect Catalonia to blink. Spanish bonds and stocks performed well on Monday, and the sovereign credit default swap slipped." 

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY eroded the six-month uptrend line last week but saw no follow through and the market has bounced off the 131.70 end of August high, adding:

"This has somewhat neutralised our immediate outlook. While above 131.70 scope remains to retest recent highs at 134.32/58. A move below the 55 day moving average at 130.93 is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low."