EUR/JPY looks to break above the 100-hour moving average
The pound is seeing a good bid on the session with cable closing back in on a test of the 1.3200 handle but that is also helping to lift the euro with the single currency gaining against the rest of the major bloc. EUR/USD is heading towards a test of the 1.1600 handle and EUR/JPY now looks to be breaking the 100-hour MA (red line) after two previous failed attempts so far this week.
That will put an end to the near-term bearish bias in the pair and the next level to watch out for will be the 200-hour MA (blue line) @ 130.15. Following which, the 130.50 handle will be the key level that buyers will be aiming for.
There isn’t any fresh headlines to have guided the move higher in euro and the pound but this is mainly positioning more than anything else. Despite the moves, we’ve not really entered into any fresh breaks just yet for either currency.
The yen continues to hold on the weaker side in trading today as E-minis are threatening a break higher and that is resulting in a move up in EUR/JPY and GBP/JPY as well. Currently, E-minis are up by almost 0.5% on the day:
Indirectly, that is helping to drive a move higher in the euro and pound against the dollar as well.