- EUR/JPY looks bid and trades closer to 131.00.
- The Japanese yen remains offered on higher US yields.
- US CB Consumer Confidence next of relevance in the docket.
The upbeat mood around US yields motivates sellers to remain in control around the Japanese yen and pushes EUR/JPY to the vicinity of the 131.00 level.EUR/JPY advances for the third session in a row on Tuesday and looks poised to challenge the YTD highs in the area just shy of 131.00 the figure, always on the back of the selling pressure hitting the Japanese safe haven.
The euro is once again testing breakout resistance against the Japanese yen, as the yen currency starts to weaken on the foreign exchange market. Lower time frame analysis shows that an inverted head and shoulders pattern is activated above the 130.60 level. According to the overall size of the bullish price pattern, the EURJPY pair could be preparing rally towards the 133.00 area.
So far, the cross is gaining 0.25% at 130.93 and a surpass of 130.97 (2021 high Apr.20) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the downside, the next support emerges at 129.50 followed by 128.29 (weekly low Mar.24) and finally 128.00 round figure mark
