EUR/JPY gives away gains, back near 132.70

The cross retraced the uptick to session peaks above 133.00.
Decent support emerges in the 132.70 region so far.
EMU’s Current Account surplus widened in February.

Pablo Piovano FXStreet

After posting fresh 2-month tops beyond 133.00 the figure in early trade, EUR/JPY has now returned to the 132.70 region following increasing EUR weakness.

EUR/JPY focused on risk trends

The cross continues to trade in the upper end of the recent range, surpassing the 133.00 handle for the first time since late February amidst renewed offered bias around the European currency.

Alleviated geopolitical concerns and easing jitters over a US-China trade war has been propping up a persistent demand for riskier assets, which in turn has been sustaining the rally in the cross via increasing outflows from the Japanese safe haven.

Data wise today, Current Account surplus in Euroland widened more than expected in February, while Japanese inflation figures will be the salient event tomorrow morning in Asia.

EUR/JPY relevant levels

At the moment the cross is up 0.08% at 132.80 facing the next hurdle at 133.08 (high Apr.19) seconded by 133.09 (high Feb.21) and finally 136.78 (high Jan.5). On the flip side, a breach of 132.28 (200-day sma) would aim for 131.80 (low Apr.12) and then 131.45 (21-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.

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