EUR/JPY firmer, regains 130.00 and above
- EUR/JPY bounces off recent lows in the mid-129.00s.
- The dollar remains offered amidst improved risk appetite.
- ECB published its Accounts of the June meeting.
The offered note in the greenback allows for extra gains in the single currency, lifting at the same time EUR/JPY back above the psychological 130.00 yardstick.
EUR/JPY meets support around 129.50
After bottoming out in the mid-129.00s on Thursday, EUR/JPY managed to regain some composure in tandem with the return of the offered bias around the greenback, which allows gains in the euro.
In addition, investors remain biased towards the risk complex, which in turn underpins the selling pressure in the Japanese safe haven. Furthermore, another uptick in US 10-year yields collaborate with the latter.
Earlier, the ECB published its Accounts of the June gathering, noting that some members favoured scaling back the pace of asset purchases. Members were also concerned that higher market rates could morph into a tightening of financial conditions and agreed to look through the current temporary pick-up in inflation.
In the US docket, the Fed will release the Monetary Policy Report later in the session.
EUR/JPY relevant levels
So far, the cross is advancing 0.45% at 130.51 and a surpass of 131.05 (100-day SMA) would aim for 132.34 (50-day SMA) and finally 132.69 (weekly high Jun.23). On the downside, immediate support comes in at 129.62 (monthly low Jul.8) followed by 128.29 (weekly low Mar.24) and then 128.15 (200-day SMA).
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.
