EUR/JPY eyeing three-week high

EUR/JPY pair is just a few pips away from clocking a fresh three-week high above 116.42 (Tuesday’s high) as JPY is once again being offered on stimulus hopes.

50% of Brexit drop retraced

The cross is trading well above 115.60 (50% of 122.00-109.20) levels. Pair’s recovery from 109.20 (Brexit low) ran out of steam at 114.79 (June 30 high) and a subsequent retreat took the cross down to 110.82 (July 6 low) before Japan stimulus hopes triggered a broad based selling in JPY and set EUR/JPY cross on a recovery mode.

The Eurozone data docket is empty today; hence the cross remains at the mercy of the action in the USD/JPY pair.

EUR/JPY Technical Levels

The immediate support is seen at 115.60 (50% of 122.00-109.20), under which prices could target 115.00 (zero figure). A violation there could yield 114.53 (5-DMA). On the other hand, a break above 116.42 (Tuesday’s high) could yield a test of 117.11 (61.8% of 122.00-109.20). A break higher would expose 119.25 (50-DMA).