EUR/JPY stays bid, retreats from tops above 129.00
|- The cross fades the initial move beyond 129.00 the figure.
- The softer tone in the greenback lends support to EUR.
- The selling bias in the Japanese safe haven
After climbing to fresh tops beyond 129.00 the figure in early trade, EUR/JPY met some resistance and has now returned to the vicinity of 128.80.
EUR/JPY looks to risk trends
The cross is prolonging the multi-session sideline theme between 128.00 and 129.00 so far on Wednesday, always vigilant on headlines from the Brexit talks, Italian politics and US yields.
Indeed, the ongoing rebound in yields of the key US 10-year note are sustaining the upside momentum in USD/JPY and in turn lending support to the cross via a weaker Yen.
In the same line, some risk-off mood appears to have re-emerged today in light of the lack of news from Brexit talks, while some optimistic headlines in the Italian political scenario earlier in the session lent extra oxygen to EUR as well.
In the meantime, the cross faces a formidable resistance in the 129.00 area, which it needs to overcome in a sustainable basis to allow for a continuation of the up move to the 200-day SMA at 129.95 and monthly peaks beyond 130.00 the figure.
EUR/JPY relevant levels
At the moment the cross is up 0.50% at 128.88 and a breakout of 129.76 (55-DAY SMA) would aim for 129.95 (200-day SMA) and finally 130.18 (monthly high Nov.7). On the flip side, initial contention emerges at 127.48 (monthly low Nov.13) seconded by 126.62 (monthly low Oct.26) and then 124.61 (2018 low May 29).
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