EUR/JPY testing the support at 129.00

Fxstreet.com (Edinburgh) - After being rejected around the area of 129.60, selling interest in the single currency pushed the EUR/JPY lower, now threatening to penetrate the key support at 129.00.

EUR/JPY advancing for the second week

The cross is posting gains for the second consecutive week after dipping to the boundaries of 124.00 in mid June. According to I.Spivak, Currency Strategist at DailyFX, “Prices are testing above resistance in the 128.42-96 area, marked by the 23.6% Fibonacci expansion and a falling trend line set from the May swing high. A break higher confirmed on a daily closing basis exposes the 38.2% Fib. at 130.72. Near-term support is at 126.56”.

EUR/JPY key levels

At the time of writing the cross is up 0.73% at 129.17 with the next hurdle at 129.89 (high Jun.20) followed by the psychological level at 130.00 and then 130.43 (61.8% of 133.82-124.94). On the downside, a drop beyond 128.52 (MA21d) would bring 128.31 (low Jun.28) and then 128.06 (Tenkan Sen line).

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