The Euro (EUR) extended upside movement against the Japanese Yen (JPY) on Friday, increasing the price of EUR/JPY to more than 121.00 after the release of nonfarm payrolls report. The technical bias remains bullish because of a higher low and higher high in the recent wave.

Technical Analysis

As of this writing, the pair is being traded near 121.55. A support may be seen near 123.35, a major horizontal resistance area ahead of 141.00, another horizontal resistance zone and then 149.78, the swing high of the last major upside rally which is also the high of 2014. If we get a sustained pullback from current levels then the likely target for long term is 149.78.

On the downside, the pair is likely to find a support around 113.54, the channel support as demonstrated in the given above monthly chart. A sustained break below the 113.50 support zone shall incite renewed selling pressure, validating a move towards the 100.00 zone in long term.

US Job Data

The US unemployment rate fell to a nine-year low in November, adding to expectations that US interest rates will rise later this month. Figures from the Labor Department showed the US economy created 178,000 jobs in November, while the jobless rate fell to 4.6% from 4.9% in October. The data adds to recent evidence of healthy growth in the economy, although wage growth was weaker than expected. Most analysts think the Federal Reserve will raise rates at its next meeting.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair on dips still appears to be a good strategy.