EUR/JPY: headed to the 125.22 2015-2016 resistance line?

Currently, EUR/JPY is trading at 122.37, up 0.52% on the day, having posted a daily high at 122.69 and low at 121.67.

EUR/JPY has been better bid from 120.50 and was bouncing off cloud support at 121.30 and the 55 day as noted y analysts at Commerzbank. "We should now re focus on the top of the range circa 123.71/124.08 (15th Dec high). Above 124.08 lies the 124.77 38.2% retracement (of the move down from 2014) and the 125.22 2015-2016 resistance line, is expected to act as critical resistance/break up point," explained the analysts, adding, "Failure at the 55 day would allow slippage to the 120.55 January low and Fibo support at 119.70, where we would expect it to again attempt to stabilise. Slightly longer term we would allow for gains to extend towards the 128.61/200 month ma."

Meanwhile, the Japanese yen finally gave up to ongoing risk appetite, falling against all of its major rivals amid a continued advance in stocks and US yields, noted Valeria Bednarik, chief analyst at FXStreet ,adding, "The 10-year note benchmark reached a high of 2.55% this Thursday, settling around 2.53%, whilst the 30-year yield remained unchanged at 3.11%."

EUR/JPY levels

Spot is presently trading at 122.37, and next resistance can be seen at 122.46 (Weekly High), 122.55 (Daily Classic R2), 122.69 (Daily High), 122.81 (Daily Classic R3) and 123.28 (Monthly High). Next support to the downside can be found at 122.30 (Yesterday's High), 122.22 (Hourly 20 EMA), 122.14 (Daily Classic R1), 121.99 (Weekly Classic PP) and 121.95 (Daily 20 SMA).