EUR/JPY: 134.32/58 on the cards?

Currently, EUR/JPY is trading at 133.14, up 0.28% on the day, having posted a daily high at 133.24 and low at 132.46.

EUR/JPY rallied through 133 the figure on a weaker yen in the US session while the broad-based dollar weakness has enabled the euro to pick up the pace and extend yesterday's ascent towards the 1.19 handle again.

N.Korea ForMin: Will make US pay with ‘hail of fire’ - TASS

However,  continuing uncertainty in respect Catalonia should keep a lid on the pair and today's FOMC minutes could be an additional factor for Wall Street that has shrugged off the implications of rates hikes so far. Meanwhile, N.Korea remains a significant factor that should keep the yen underpinned. 

EUR/JPY levels

Analysts at Commerzbank noted that this current price action 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 131.02 is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low. Where are we wrong near term? Above 134.58 would target the 1979- 2017 resistance line at 139.12," the analysts at Commerzbank argued.