EUR/JPY remains bid and retakes the area above 129.00
|- EUR/JPY adds to recent gains and surpasses 129.00.
- Higher yields support the buck and sink the Japanese yen.
- US ISM Non-Manufacturing next of note in the calendar.
EUR/JPY picks up extra pace and manages well to break above the key barrier at 129.00 the figure on turnaround Tuesday.
EUR/JPY targets the 200-day SMA
EUR/JPY advances for the second session in a row on Tuesday and manages to reclaim the area just past 129.00 the figure on the back of the resumption of the buying interest in the dollar and the rebound in US yields.
On the latter, yields of the US 10-year note advance beyond the key 1.50% yardstick, reaching at the same time new 3-day highs. The short end of the curve follows the same path and navigates multi-day highs past 0.28%.
The greenback, in the meantime, retakes the 94.00 barrier and above when tracked by the US Dollar Index (DXY) amidst the broad-based soft note in the risk complex.
In the docket, German and EMU final Services PMIs came at 56.2 and 56.4, respectively, in September; while Producer Prices in the euro bloc rose less than expected in August: 1.1% MoM and 13.4% YoY.
In the US, the ISM Non-Manufacturing will be the salient event later on Tuesday. Earlier, the trade deficit widened to $73.3B in August.
EUR/JPY relevant levels
So far, the cross is up 0.14% at 129.04 and a surpass of 129.45 (55-day SMA) would expose 129.72 (200-day SMA) and then 130.47 (weekly high Sep.29). On the downside, the next support comes at 128.51 (monthly low Oct.4) followed by 127.93 (monthly low Sep.23) and finally 127.00 (round level).
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