EUR/JPY consolidating at 130.00 handle after 100-pip bull run

• There is low Japanese yen demand as a safe-haven currency as US stocks trade higher.
• Mario Draghi, President of the ECB (European Central Bank) will be speaking on Friday at 13:15 GMT.

The EUR/JPY is trading at around 130.00 up 0.40% on Wednesday. 

In Asia, the EUR/JPY found a low at 129.35 and got a strong boost in the European session which rolled over into the US session to see the pair flirt with 130.50. The pair has now retreated from the level and is stabilizing in the 130.0h handle region.

The US dollar is trading mixed on Wednesday which helped boost the euro. On Tuesday, US President Donald Trump announced that he withdrew the United States from the Joint Comprehensive Plan of Action or the Iran nuclear deal. The decision can hurt USD demand as it can destabilize the already fragile diplomatic US relations with China and Russia which are also parties in the Iran agreement. 

The next salient event in the Eurozone will be the speech of Mario Draghi, the European Central Bank’s President which is scheduled on Friday. 

The Japanese yen which is considered a safe-haven currency is seeing little demand as US stocks are trading higher in what seems a relief rally after the US withdrawal from the Iran nuclear deal. 

EUR/JPY 4-hour chart 

The bulls are trying to reverse the recent bear trend. Immediate support is the 130.00 handle followed by the 129.24 cyclical low. To the upside, the bulls will likely meet resistance at 130.50 (high of the day) and then at 131.00 and the 132.00 handle.