EUR/JPY advances to 2-week highs near 126.70

The cross extends the upside and approaches 127.00.
The better mood in riskier assets props up the upside.
FOMC meeting next of relevance in the calendar.

Pablo Piovano FXStreet

The softer tone around the Japanese safe haven keep sustaining the up move in EUR/JPY to fresh 2-week highs near 126.70.

EUR/JPY now looks to FOMC meeting

The continuation of the selling bias around the greenback in collaboration with the upbeat sentiment in the risk-associated complex keeps supporting the up move in the cross to the vicinity of the critical 127.00 the figure and opening at the same time the door for a potential visit to the 200-week SMA at 127.13 and YTD highs at 127.50.

Later in the session, the message from the FOMC meeting is expected to lean towards the dovish side, while the new ‘dots plot’, the Fed’s balance sheet and projections of growth and inflation are seen in the centre of the debate.

Earlier in the day, German Producer Prices came in below estimates during February, contracting at a monthly 0.1% and rising 2.6% from a year earlier.

EUR/JPY relevant levels

At the moment the cross is gaining 0.15% at 126.65 facing the next up barrier at 126.74 (high Mar.20) seconded by 127.13 (200-week SMA) and finally 127.50 (2019 high Mar.1). On the other hand, a breach of 126.02 (21-day SMA) would aim for 125.17 (55-day SMA) and then 124.27 (low Mar.8).

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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