EUR/JPY looks firmer albeit off 2021 highs above 134.00

EUR/JPY records new 201 highs above 134.00.
Higher US yields sponsor the selling mood in JPY.
US ISM Manufacturing next of note in the US calendar.

Pablo Piovano FXStreet

The selling pressure in the Japanese currency underpins the continuation of the upside momentum in EUR/JPY to fresh YTD tops beyond 134.00 the figure.

EUR/JPY focuses on US docket

The greenback keeps treading water on Tuesday despite the corrective upside in yields of the US 10-year benchmark, which seems to sustain the offered note in the Japanese safe haven.

In addition, better-than-expected PMI prints in the euro area so far fail to ignite a more lasting upside impulse in the European currency, all amidst the somewhat cautious mood among investors considering key US data releases later on Tuesday and on Friday.

In the domestic docket, both German and EMU Manufacturing PMIs came in above estimates for the month of May, while the German Unemployment Change shrunk by 15K and the jobless rate stayed unchanged at 6.0%. In Japan, the Manufacturing PMI improved a tad to 53.0 (from 52.5).

Later in the US session, the ISM Manufacturing will take centre stage.

EUR/JPY relevant levels

So far, the cross is gaining 0.09% at 134.03 and a surpass of 133.11 (2021 high Jun.1) would pave the way for a test of 134.40 (monthly high Sep.2017) and then 134.50 (monthly high Oct.2017). On the downside, the next support at 132.52 (weekly low May 24) followed by 131.64 (weekly low May 12) and finally 130.98 (monthly low May 5).

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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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