EUR/JPY advances further and targets 129.00

EUR/JPY adds to gains well above 128.00 on Wednesday.
Weaker Japanese yen sustains the upside momentum in the cross.
US 10-year yields surpass the 1.40% mark, fresh tops.

Pablo Piovano FXStreet

The increasing selling pressure in the Japanese yen is fuelling the upside momentum in EUR/JPY well past the 128.00 hurdle on Wednesday.

EUR/JPY stronger on firm US yields

EUR/JPY extends the upside for the second session in a row and trades closer to the key hurdle at 129.00 the figure, area last visited in December 2018.

The strong rebound in US yields bolsters the selling bias around the Japanese yen and collaborates further with the rally in EUR/JPY, which is already navigating its second week in a row in the positive ground.

Data wise, the German economy expanded 0.3% QoQ in Q4, as per latest GDP figures. In the US docket, the second testimony by Chief Powell is unlikely to come in on a different tone that yesterday’s one before Congress.

EUR/JPY relevant levels

At the moment the cross is gaining 0.60% at 128.61 and faces the next resistance at 128.79 (2021 high Feb.24) followed by 129.25 (monthly high Dec.13 2018 and then 130.14 (monthly high Nov.7 2018). On the other hand, a drop below 127.30 (weekly high Feb.17) would aim for 126.10 (monthly low Feb.4) and finally 125.08 (2021 low Jan.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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