**EUR/JPY BREAKS KEY TECHNICAL LEVELS, TESTS 185.00 MARK**
The EUR/JPY currency pair extended gains for a second consecutive session during Asian trading Monday, pushing toward the 185.00 level after clearing critical technical resistance. The cross broke above both its nine-period and 50-period Exponential Moving Averages, signaling a shift in near-term momentum that forex traders are closely monitoring.
This technical breakout suggests growing bullish sentiment for the euro against the yen, potentially driven by diverging monetary policy expectations between the European Central Bank and Bank of Japan. The move above key EMAs typically attracts momentum-based algorithmic trading systems and technical traders looking to ride trending moves.
Market participants should watch whether EUR/JPY can establish support above 185.00, which would confirm the bullish breakout and potentially open the door to further upside. Any failure to hold above the moving averages could trigger profit-taking from short-term traders.
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FXnCO Insight
** Traders should monitor the 185.00 level as a critical support-turned-resistance zone, with stops likely clustered just below the nine-period EMA for momentum plays.
Source: FXStreet