EUR/JPY looks firmer and reaches 130.00, 3-day highs

EUR/JPY adds to Tuesday’s gains around the 130.00 mark.
US yields recover and sustain the JPY-selling mood.
Markets’ attention remains on the ECB event on Thursday.

Pablo Piovano FXStreet

The selling pressure in the Japanese currency keeps the recovery in EUR/JPY well and sound on Wednesday.

EUR/JPY bounces off the mid-128.00s

After a brief drop to new 4-month lows near 128.50 on Tuesday, EUR/JPY managed to regain buying interest on the back of the moderate recovery in US yields and the eventual selling bias in the Japanese yen.

Indeed, US 10-year yields regain the smile and the 1.28% region after bottoming out in levels last seen back in February around 1.13% on Tuesday.

The dollar, in the meantime, shows some volatility and fuels the rebound in the single currency ahead of the key ECB event on Thursday.

On the latter, consensus among traders expects the central bank to keep or even enhance the current mega-accommodative stance of the monetary conditions in the euro area.

EUR/JPY relevant levels

So far, the cross is gaining 0.46% at 129.95 and a surpass of 130.01 (weekly high Jul.21) would expose 131.08 (weekly high Jul.13) and then 132.43 (monthly high Jul.1). On the downside, immediate support is located at 128.59 (monthly low Jul.20) seconded by 128.54 (61.8% Fibo of the January-June rally) and finally 128.37 (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.

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