Forex: EUR/JPY rally stalls at Fibo resistance

FXstreet.com (San Francisco) - The euro has rallied to a four-week high against its Japanese counterpart this Tuesday, climbing to as high as 97.81 but stalling just below the 50% Fibo retracement level of the 101.59/94.12 downswing, at 97.85.

The rise came as the yen dropped against most of its peers as risk appetite rose in the market. "This was triggered by the Germany's support of the European Central Bank's decision to incorporate bond-buying into its efforts to fight debt crisis in the region," explains Marcio Pereira, Operations Manager at Tradervox.com.

EURJPY last trades at 97.75, recording a 0.9% gain on the day. If the upward thrust continues and pushes above the mentioned Fibo resistance area, the 55-day EMA at 98.10 may attract sellers, then at 98.32 (28 June low) and 98.70 (61.8%, mentioned decline). To the downside, support lies at 97.33 (27 July high), 96.97 (2 Aug high) and 96.55 (100-EMA, 4-hr).