Forex: EUR/JPY notches another new high, +7.859% MTD in April

FXstreet.com (Barcelona) - The EUR/JPY finished the session 69 pips higher at 130.42. Reaction to economic data out of Japan (Machinery Orders 7.5% actual vs. 6.9% forecast) earlier this evening was muted as the pair consolidates above massive gains from the previous 4 days. “EUR/JPY is consolidating above 130.00 and volatility is likely to remain very high so stay flexible on this one. The next technical target is a weekly high above 134.00 whilst support levels aren’t really strong until 127.75.” notes Sean Lee of FXWW

Due to the wide ranges in recent sessions, it helps to break down to shorter time frames in order to get a better idea of where support might be located in the coming sessions.

Looking at the 1 hour chart, initial support can be found near the 129.40 area (consolidation base), followed by 128.75 (consolidation base). A break below 128.75 opens to the door to further support down at 128.40 (bullish hammer candle reflecting demand). Initial resistance sits at 130.53 (high on April 15th), followed by 130.98 (daily pivot high). A break above here opens the door 131.54 (daily upper pivot).