Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair rallied up to 127.81, its highest in over a month, rallying on the back of EUR demand. Key Quotes: "Despite the Japanese Yen saw its share of gains amid dollar's weakness, the EUR/JPY pair is closing higher for fifth consecutive day, and currently trades above the previous March high around 127.30, indicating that market's sentiment still favors the upside. Technically, the pair has a major resistance, and probable target around 128.50, the 100 DMA. In the meantime, the 1 hour chart shows that the price is well above its moving averages, with the 100 SMA advancing above the 200 SMA, as the technical indicators hold flat within positive territory, reflecting the latest downward move in price, but still maintaining the risk towards the upside. In the 4 hours chart, the technical indicators present some bearish divergences, posting lower highs as the price rallies that are still to be confirmed. In the same chart, the 100 SMA has accelerated its advance above the 200 SMA, both in the 125.00 region, supporting an upward continuation on a break above the mentioned daily high." For more information, read our latest forex news.