EUR/JPY on way to 124.40, major static? - FXStreet

Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY pair surged on the back of yen's weakness, with the Japanese currency sharply lower against all of its major rivals, amid renewed speculation that the imbalances between both Central Banks will keep on widening.

Key Quotes:

"During the past Asian session, rumors resurged on a delay on the sales tax, although there were no official comments on that.

From a technical point of view and in the short term, the 1 hour chart shows that the price consolidates near the daily high set at 123.89, whilst the technical indicators have corrected overbought readings and now turned flat within positive territory, indicating buyers are now in control.

In the same chart, the price is above its 100 and 200 SMAs, with the shortest heading higher below the largest, a sign that the upward momentum has not yet reached its peak.

In the 4 hours chart, the price has overcome its moving averages that anyway remain horizontal and in a tight range in the 123.20/50 region, whilst the technical indicators resumed their advances within bullish territory, supporting further gains up to 124.40, a major static resistance level."