EUR/JPY soars to highest since October 2015

• Spot hits highest in more than 2 years.
• EUR/USD rallies above 1.2500 while USD/JPY remains steady. 

The EUR/JPY pair resumed its rally during the American session and broke above previous highs, hitting levels last seen back in October 2015. It moved toward 137.00 supported by the EUR/USD breaking above 1.2500. 

The euro peaked against the yen at 136.90 and it was trading at the top near the end of the session, posting a gain of 130 pips. 

Just two days ago EUR/JPY was headed toward a more significant slide but found support above 134.00 and reversed sharply. From Tuesday’s low it has risen almost 300 pips and now appears to be looking for further gains. 

Levels to watch 

EUR/JPY resumed the rally after making a pullback to the 136.00 zone. It broke 136.60/65 (previous YTD high) and gained further strength. If it continues to rise resistance levels might be seen at 137.00 (psychological), 137.35 and 137.85/90. 

As long as it holds on top of 136.00 the odds of more gains will remain elevated. A slide below could remove some of the bullish momentum. The key dynamic support for the euro is an uptrend line that at the moment stands around 134.30, also a horizontal support. A break lower could clear the way for a correction.