EUR/JPY challenges 2-day highs near 125.80
- The cross moves higher on risk-on sentiment.
- The upside momentum now targets the 126.00 area.
- JPY-selling behind the up move.
The continuation of the upbeat mood around the riskier assets is bolstering today’s buying pressure in EUR/JPY to the current 125.70/80 band.
EUR/JPY looks to risk trends
The cross is extending the consolidative theme in the upper end of the range, although a breakout of the critical 126.00 neighbourhood still remains elusive.
Positive sentiment on the trade front remains the exclusive driver for the up move in the cross and the rest of the riskier peers, particularly after President Trump delayed the tariff deadline in response to recent progress in the US-Sino trade talks. According to latest news, Trump and Xi Jinping could meet once again at some point in the next month.
In the weekly docket, Chief Powell’s testimonies on Tuesday and Wednesday should keep investors vigilant on the views of the Federal Reserve regarding the balance sheet and the potential reassessment of QT. In Japan, Industrial Production, Retail Sales and unemployment figures are also due later in the week. In addition, flash inflation figures in the euro area and Germany should also keep investors entertained ahead in the week.
EUR/JPY relevant levels
At the moment the cross is gaining 0.35% at 125.84 and a surpass of 125.93 (high Feb.20) would expose 125.94 (high Feb.4) and finally 127.02 (100-day SMA). On the other hand, the next support lines up at 125.24 (10-day SMA) seconded by 124.22 (low Feb.15) and then 124.17 (low Feb.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.
