- EUR/JPY trades on a better mood albeit still in sub-122.00 levels.
- Improved sentiment in the riskier assets sustains today’s up move.
- US Philly Fed next of relevance in the calendar.
The better tone in the European currency is bolstering the recovery in EUR/JPY to the area just below 122.00 the figure.
EUR/JPY now looks to US docket, risk trends
The cross is reversing two consecutive sessions with losses and at the same time is charting a bullish ‘outside day’, which could be a prologue of further gains.
The increased selling pressure in the greenback post-FOMC meeting is lending extra oxygen to the risk-associated complex, while the ongoing rebound in yields of the US 10-year benchmark is also adding to JPY-selling.
Later in the session, and while market participants continue to adjust to the fresh views from the FOMC, the Philly Fed index is next on tap along with usual report from Initial Claims and Current Account figures for the first quarter.
In Japan, the BoJ left its monetary policy unchanged as broadly expected, while the calendar showed the All Industry Activity Index expanding more than expected at 0.9% MoM.
EUR/JPY relevant levels
At the moment the cross is gaining 0.39% at 121.82 and faces the next hurdle at 122.08 (10-day SMA) followed by 123.17 (high Jun.11) and then 123.75 (high May 21). On the other hand, a breakdown of 121.06 (low Jun.18) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).
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