The EUR/JPY currency exchange rate jumped on Wednesday at 19:00 GMT. Strangely enough, the surge was fueled by the US Federal Reserve cutting stimulus. However, the pair does not include the US Dollar. More likely, the investment heading to the USD caused a run from the safety of the Japanese Yen. Namely, the Japanese Yen lost value due to the markets shifting to the USD. The eventual spillover of the loss of value impacted the EUR/JPY.
On Thursday morning, the pair approached the 129.00 mark. Above the 129.00 level’s resistance, the December 8 high levels were expected to provide resistance at 129.07/129.10. In addition, note the weekly R1 simple pivot poin at 129.14.
If the rate passes the resistance levels at 129.00/129.14, the pair might aim at the late November high levels in the 129.53/129.60 zone. Higher above, the weekly R2 simple pivot point might provide resistance at 129.92. Moreover, take into account the 130.00 level and the mid-November high levels above it.
On the other hand, a potential decline might look for support in previously passed high level zone at 128.43/128.46. Below this zone, the weekly simple pivot point and the 50 and 200-hour simple moving averages might act as support in the 128.35/128.25 range.