• EUR/JPY advances to new tops beyond 128.00 the figure.
  • Further JPY-selling continues to lend wings to the rally.
  • Softer dollar supports the risk-on mood in global markets.

The rally in EUR/JPY remains unabated, quickly leaving behind the key barrier at 128.00 and recording at the same time new 2021 highs.

EUR/JPY bolstered by JPY-weakness

EUR/JPY trades in the positive territory for the sixth consecutive session and reaches levels last seen in December 2018 above the 128.00 yardstick on turnaround Tuesday.

As usual in past sessions, the upbeat tone in the risk galaxy coupled with the increasing selling bias surrounding the Japanese safe haven collaborate with the sharp upside in the cross.

In fact, higher US yields – particularly the 10-year reference – keep bolstering the offered stance in the Japanese yen and therefore adds extra legs to the rally in EUR/JPY.

Further buying interest in the European currency came after the Economic Sentiment in both Germany and the broader Euroland surpassed estimates in February, as per the latest ZEW survey figures. In addition, flash Q4 GDP figures also came in a tad above consensus.

In Japan, earlier data saw the key Tertiary Industry Activity Index contracting 0.4% MoM, trimming the previous 0.6% drop.

EUR/JPY relevant levels

At the moment the cross is gaining 0.35% at 128.22 and faces the next up barrier at 128.33 (2021 high Feb.16) 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 127.49 (monthly high Jan.7) would aim for 126.10 (monthly low Feb.4) and finally 125.08 (2021 low Jan.18).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

Lagarde, Powell and Bailey speak about policy at ECB Forum – LIVE

Lagarde, Powell and Bailey speak about policy at ECB Forum – LIVE

ECB President Lagarde, FOMC Chairman Powell and BOE Governor Bailey talk about the policy outlook at the ECB's annual Forum on Central Banking in Sintra. US dollar gathers strength as central bankers debate inflation, rate hike outlook and recession risks.

FOLLOW US LIVE

EUR/USD extends losses below 1.0500 as ECB Forum kicks off

EUR/USD extends losses below 1.0500 as ECB Forum kicks off

EUR/USD is accelerating its decline below 1.0500, as the US dollar gains upside traction on Powell's confidence in the economy at the ECB Forum. Investors assess softer German inflation, with the central bank divergence theme in play. 

EUR/USD News

GBP/USD drops towards 1.2100 amid ECB's Sintra Forum

GBP/USD drops towards 1.2100 amid ECB's Sintra Forum

GBP/USD is dropping towards 1.2100, turning south as the US dollar firms up. Powell and Bailey underscore policy divergence at the ECB Forum. Investors remain wary amid looming recession and Brexit worries.

GBP/USD News

Gold turns south towards $1,820 as USD gathers strength

Gold turns south towards $1,820 as USD gathers strength

Gold Price is falling steeply towards $1,820, as Fed Chair Powell's hawkish stance powers the US dollar across the board. The US Treasury yields are recovering losses, adding to the weight on the non-yielding bright metal. 

Gold News

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures