EUR/JPY retakes hourly 200-MA in Asia

EUR/JPY jumped above hourly 200-MA level of 113.14 on broad based Yen selling, although momentum appears to have stalled around 113.50 levels.

Stuck between 23.6% Fibo & 38.2% Fibo

The cross has been largely restricted to a range of 112.22 (23.6% of Brexit day high-low) and 114.09 (38.2% of Brexit day high-low) since the beginning of the current month.

A rebound from yesterday’s low of 112.36 was largely triggered by Fed’s Bullard who said a rate hike could happen even in September. This helped USD/JPY move back above 100.00 levels, while EUR/USD was relatively resilient to hawkish talk.

EUR/JPY Technical Levels

A close above 114.09 (38.2% Fibo) would open doors for a test of 115.32 (50-DMA). A violation there could yield move to 116.00 (zero figure). On the other hand, a breakdown of support at 112.22 (23.6% Fibo) would shift risk in favor of a drop to 110.82 (July 6 low). A cut below the same would expose 109.20 (Brexit day low).