EUR/JPY jumps above 125.00 as Asian stocks cheer trade optimism

Easing US-China trade tensions is likely boding well for the equities and the JPY crosses.
A combination of trade optimism and the growing evidence of a slowdown in the US economy could keep EUR/JPY better bid in the near-term.

Omkar Godbole FXStreet Contributor

EUR/JPY is currently trading at session highs of 125.00, having clocked a low of 124.69 earlier today.

The anti-risk JPY is likely being offered in response to trade optimism and the resulting rise in the Asian equities.

As of writing, Japan's Nikkei is up 1.7 percent and stocks in Australia and New Zealand are reporting 0.36 and 0.18 percent, respectively. Meanwhile, the Shanghai Composite index has added 1.17 percent.

Reports that the US and China reached consensus in principle on the main topics in their trade discussions seems to have boosted risk appetite. Both sides are witnessing a slowdown in their respective economies. Therefore, the probability of a breakthrough trade deal is high. Hence, stocks could remain better bid in the near-term, keeping the JPY under pressure.

Further, the dismal US retail sales number released last week has likely convinced many that the greenback is well past its prime. So, EUR/USD could climb this week.

EUR/JPY Technical Levels

1. R3 125.66
2. R2 125.27
3. R1 125.01
PP 124.62
1. S1 124.36
2. S2 123.97
3. S3 123.71

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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