EURJPY Tests Major Resistance Zone
22 March 2022
The vertical rise of the EURJPY cross is not ending, and the euro is more than 1% stronger against the yen today, rising above 133 for the first time since October 2021.
However, this looks like a significant resistance for the euro. Considering the recent vertical upward trend, traders might start taking profits here, likely dragging the price lower over the next few days.
The first support could be near 131.50, where January highs are. If the price drops below it, it might revisit the 130.00 area, where the 50 and 200-day averages converge.
Alternatively, if the cross jumps above 133.50, we might see some pretty large stop losses triggered, likely sending the price further higher toward 135.
Should sentiment remain positive, the eventual correction could be quickly bought as the JPY looks pretty unfavorable in the current market conditions (despite some risk-off trading due to the Ukrainian conflict).