Forex: EUR/JPY regains fresh multi-year highs above 127.00

EUR/JPY is currently printing fresh 33-month highs last at 127.24 on both Yen weakness and Euro strength, going above previous Friday highs at 127.00 round. The cross bounces from fresh weekly lows at 123.98 in early London trade, where “Sovereign players were noted buyers of EUR/USD at the overnight lows near 1.3465,” reports FXWW founder Sean Lee.

“Overall, I still expect to see a period of consolidation for the EUR and for its crosses, although picking a top in EUR/JPY is an exercise fraught with danger,” the analyst adds, suggesting: “the lack of any explosive follow through does suggest that the bullish momentum is rather moderate,” he concludes. The cross is higher a modest +0.43% for the week, with SP500 closing in NY higher by +1.05%, and all eyes already focused on upcoming Thursday's ECB and Ecofin.

Immediate resistance to the upside for EUR/JPY shows at April 14 2010 highs 127.68, followed by April 02 2010 highs at 127.92, and Oct 02 2009 lows at 128.98. To the downside, nearest term support lies at Friday's highs 127.00, followed by Friday's London session highs/Monday's Asian session lows at 126.17/04, and NY session lows at 125.70.