- EUR/JPY adds to recent gains above 133.00
- The selling bias in the dollar lends wings to the euro.
- German final Q1 GDP contracted 1.8% QoQ, 3.4% YoY.
The softer note surrounding the greenback lifts the demand for the single currency and lifts EUR/JPY further north of the 133.00 mark on Tuesday.
EUR/JPY stronger on firm risk appetite
EUR/JPY advances for the second session in a row on Tuesday and extends the positive note at the beginning of the week.
In fact, the broad-based risk-on sentiment keeps the dollar depressed and bolsters the buying bias in the risk complex, motivating the cross to trade at shouting distance from YTD peaks around 133.40.
Adding to the negative tone in the dollar, yields of the US 10-year reference slip back to the sub-1.60% area so far, extending the downtrend since last week’s tops around 1.70%.
In the euro docket, the German economy contracted 1.8% QoQ during the January-March period and 3.4% over the last twelve months. In addition, the German IFO survey showed the Business Climate improved to 99.2 for the month of May, surpassing expectations.
Later in the NA session, the Consumer Confidence will take centre stage seconded by housing data and the weekly report by the EIA on crude oil supplies.
EUR/JPY relevant levels
So far, the cross is gaining 0.33% at 133.24 and a surpass of 133.43 (2021 high May 19) would pave the way for a test of 133.48 (monthly high Apr.2018) and then 134.00 (round level). On the downside, the next support at 131.64 (weekly low May 12) seconded by 130.98 (monthly low May 5) and finally 130.84 (50-day SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.