EUR/USD Moves Higher With Help From EUR/JPY And Technicals

The EURUSD has been helped by the sharp move higher in the EURJPY on the back of movement back in the risk trades.  The pair also got chart help higher from the bounce off the 1.4242-1,4246  level.  This level is taking on an increased level of importance for the pair today from a technical perspective.

As a reminder, this area includes the 100 week moving average  (1.4242 is the 100 week moving average) and the high from yesteday (1.4246 was the high).  Today, the level has been a level of support and resistance on 4 separate occassions (see chart below).  As a result, it is certainly a key level to watch.

The increased interest in the EURJPY is giving the EURUSD some support.  The EURJPY is testing the highs from yesterday at the 137.22 level.  A break of this level has additional resistance at the 137.40 level (high from April 6th).

However, above these two level will clear the way for the longer term target at the 50% retracement level of the move down from the July 2008 high to the Jan 2009 low.  This level comes in at the 140.90 area.  It seems a long way off but the momentum moves in these cross pairs can often move fast and the appetite for risk in the market seems to be increasing.  Watch the 137.40 level for clues today.

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