EUR/JPY is showing some Friday afternoon sign of life, edging above 114.75 resistance dating back to the end of July. More resistance lies up at 115.50 if the cross can gather any momentum.
The strength in the cross is helping drag USD/JPY higher, up to the 83.40 level after finding support in the 83-teens earlier today. Traders are reluctant to jump on the EUR/JPY bandwagon given the hangover from the European sovereign debt crisis which has still yet to clear (he says using a metaphor that is all too familiar).
Like EUR/GBP, the euro crosses are are being dragged higher by the EUR/USD leg with little fundamental enthusiasm among traders (though at least GBP bears can point to possible further QE by the BOE).
I’d be very reluctant to fade the EUR/JPY rally as it just seems so discordant with the present fundamentals that there might be something going on beneath the surface that we cannot yet see…EUR/JPY trades now at 114.77.
