EUR/JPY flirting with tops near 132.30

Cross found support around 131.80.
JPY remains offered so far.
Thin trade conditions due to holiday in US.

Pablo Piovano FXStreet

The selling bias around the Japanese safe haven currency has resumed at the beginning of the week and is now helping EUR/JPY to clinch daily highs in the 132.30 area on Monday.

EUR/JPY focus on EUR docket

The recent buying interest around JPY appears mitigated at the beginning of the week and is now collaborating with the ongoing rebound in the cross from recent 3-month lows in the 131.80 band to levels beyond 132.00 the figure.

In the meantime, the cross is trading in the positive territory after two consecutive weekly declines, all following the sharp descent in USD/JPY in turn responding to a strong sell off in the greenback.

Looking ahead, the ECB minutes (Thursday) have recently grown in importance, as market participants will look for further details following the dovish-ish twist from the central bank at its January meeting and the usual prospects of the potential exit from the current QE programme.

EUR/JPY relevant levels

At the moment the cross is gaining 0.33% at 132.30 facing the next up barrier at 133.29 (10-day sma) seconded by 134.53 (21-day sma) and finally 137.53 (2018 high Feb.2). On the downside, a breach of 131.58 (low Feb.14) would expose 131.06 (200-day sma) and then 127.56 (low Aug.18 2017).

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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