EUR/JPY: catching a bid in a drift ahead of the Jackson Hole speeches tomorrow

Currently, EUR/JPY is trading at 129.20, up 0.36% on the day, having posted a daily high at 129.33 and low at 128.54.

EUR/JPY, despite Wall street stepping back ahead of the Jackson Hole speeches tomorrow, has perked up, collecting a bid in the face of a weaker yen across the board while USD/JPY challenges the mid point of the 109 handle after plenty of resistance at 109.40 previously. 

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"A stronger EUR and a recovery in US treasury yields during the US afternoon pushed the pair up to the mentioned daily high, where the pair has the 61.8% retracement of the latest daily decline between 130.38 and 127.55," noted Valeria Bednarik, chief analyst at FXStreet. The cross, however, has been held up on the last hourly stick with some downside in EUR/USD with DXY making a recent advance on the 93 handle, up +0.13% on the day.

EUR/JPY levels

Analysts at Commerzbank noted that the resistance line is at 129.76, the August lows and as long as the 127.46 level holds on a daily chart closing basis, the one month resistance line at 129.76 could be revisited. "Were a drop below the 127.46 level to be seen, though, we look for slippage to the May high at 125.81 to unfold. Where are we wrong near term? Initial resistance at 130.39 (August 16 high) guards the recent high at 131.40. Only above here would reintroduce the 134.32/61.8% of the move down from 2014,' added the analysts.