Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen weakened during US trading hours, undermined by better-than-expected US Consumer Confidence figures, leading to an advance up to 114.93 in the EUR/JPY pair, a fresh August high.

Key Quotes:

"After trading in a well-limited range for over three weeks, the pair finally broke higher, as hope for a US rate hike before the year end  put the safe-haven currency under strong selling pressure, even despite the poor performance of Wall Street this Tuesday."

"Technically, the  1 hour chart shows that technical indicators have lost upward strength within overbought territory, supporting some consolidation ahead before the next directional move. Nevertheless, the upside is favored, as the price has moved well above its 100 and 200 SMAs, with the shortest accelerating north above the largest."

"In the 4 hours chart, technical indicators head sharply higher, entering overbought territory and with no signs of changing bias at the time being, while the price has surpassed its moving averages, for the first time since late July.

The pair has a Fibonacci resistance around 115.00, the 38.2% retracement of the latest bullish run. Having held above the 61.8% retracement of the same rally, a recovery beyond that 38.2% retracement should support a steadier advance up to 118.46, July 21st daily high."