EUR/JPY ends year above 135.00, highest since Oct 2015

• EUR/JPY breaking key technical resistance. 
• Euro gained 10% against yen over 2017. 

The EUR/JPY pair continued to rise on Friday and broke above 135.00 for the first time in two years. It peaked at 135.50 and then pulled back modestly. 

During the second quarter of the year, EUR/JPY started to move to the upside and continued to do until September when it topped around 134.00/50. At the beginning of the current week it rose above the mentioned level and resumed the upside. The pair appears to be poised to achieve more gains over the medium-term from a technical perspective. 

Among majors, the euro was the best performer during 2017 and the immediate outlook appears bright from a fundamental perspective. Eurozone economy created expectations that the QE program from the ECB could end next year. The yen was affected in 2017 by rising global equity market and yields. 

Levels to  watch 

If the EUR/JPY pair drops back below 134.00 it would lose momentum. The key support could be seen at 132.00/131.50; a strong horizontal support and the 20-week moving average. A slide below would damage the bullish perspective of the euro. To the upside, the immediate resistance is now 135.50/50, followed by 136.00 and then 136.60.