The EUR/JPY currency pair has risen following the release of the US employment report. As a result, the pair rose to 137.75, reaching the highest level in a week.
From the weekly low, EUR/JPY has gained more than 400 pips. The sharp rebound weakened the negative outlook for the pair. On the upside, the next key resistance is at 137.90, the 20-week Simple Moving Average. A weekly close above that level should open the doors to more gains.
On Friday, EUR/JPY is rising for the fourth consecutive day, boosted after the release of US employment data. Non-farm payrolls rose by 528K above the 250K expected. The numbers triggered a decline in Treasuries that weighed on the yen.
The Japanese currency tumbled across the board even as equity prices on Wall Street declined, hit by higher US yields. The US 10-year yield rose from 2.70% to 2.84%.
EUR/JPY’s rally on Friday is being driven by a weaker yen.