The bullish momentum in the single currency continues to prop up the rally in EURJPY to the 121.00 region, where some decent resistance has emerged so far.
The cross keeps its march north unabated for the second week in a row today, trading in the area of 3-month peaks in the 121.00 neighborhood.
The positive momentum surrounding the European currency coupled with persistent outflows from the Japanese safe haven in favor of riskier assets have been sustaining the sharp rebound in the cross to levels last seen in late July.
At the moment the cross is gaining 0.05% at 120.90 and faces the next hurdle at 121.35 (monthly high Oct.17) seconded by 122.26 (200-day SMA) and then 123.35 (monthly high Jul.1). On the flip side, a breach of 119.79 (100-day SMA) would expose 118.35 (55-day SMA) and finally 117.07 (monthly low Oct.3/7).