Forex: EUR/JPY finds strong support at 119, breaks above 120

EUR/JPY is trading at 120.25 last, off daily lows at 119.00 round, where it has found bids three times already so far for the week, since Monday's big sell-off following Italian election results. The cross is still -0.59% lower from previous Asia-Pacific open yesterday, with Nikkei index closing down by -2.26%, while for the week, EUR/JPY is down -2.38% from previous weekly close Friday, moments ahead of Japan retail sales at 23:50 GMT.

As Valeria Bednarik notes, Chief Analyst at Fxstreet.com: “the hourly chart shows some upward momentum coming from indicators, but 100 SMA accelerating to the downside and moving away from 200 one above current price suggests otherwise. In the 4 hours chart technical readings corrected extreme oversold readings but remain in negative territory, which keeps supporting a downside continuation,” the analyst concludes.

Valeria finds support levels at: 119.90, 119.45 and 119.00, while resistance levels at: 120.40, 120.90 and 121.50.