EUR/JPY jumps to test last week highs near 122.00

• EUR/JPY looks poised to test 122.00, likely to reach one-month highs.
• Euro holds onto gains across the board, trading at multi-day highs versus pound and yen.

The EUR/JPY pair is rising sharply on Monday, boosted by a stronger euro across the board and by an improvement in risk appetite. Higher equity prices weakened the Japanese yen helping the upside in the cross.

Recently EUR/JPY climbed to 121.96, matching last week's highs. It remains with strong momentum and is poised to test the 122.00 area. A consolidation above 122.00 would clear the way to more gains. The next resistance stands at 122.50. It the euro fails to break 122.00 it would likely correct lower toward 121.10/15 (July 8 low) with interim support at 121.45.

The move to the upside on Monday was triggered by a rally of the euro across the board. The common currency rebounded from weekly lows versus the pound and the Swiss franc. While the yen weakened amid higher US yields and on risk appetite.

The US 10-year climbed to 0.66%, the highest since last Wednesday. The Dow Jones is rising 1.51% or almost 400 points, while the S&P 500 gains 1.25%.

Levels to watch