EUR/JPY looks firmer around 125.00 as risk appetite improves

EUR/JPY advanced to 125.20 before shedding some ground.
Improved sentiment in the risk complex fuels the upside.
German Economic Sentiment surprised to the upside.

Pablo Piovano FXStreet

EUR/JPY has regained the 125.00 mark and beyond on the back of the strong resumption of the appetite for riskier assets.

EUR/JPY now looks to 2020 highs

EUR/JPY has managed to attract buying interest and advance past the 125.00 barrier to clinch fresh tops around 125.20 during early trade.

In fact, the generalized better mood in the risk complex is weighing once again on the demand for the greenback and pushes the cross back to the positive ground after two pullbacks in a row.

Rising hopes on a potential deal in the US political arena regarding another stimulus bill, news citing Russia has registered a COVID-19 vaccine and auspicious results in key indicators are all sustaining the better momentum surrounding the riskier assets.

Earlier in the session, and in line with the current context, the German/EMU Economic Sentiment came in above expectations for the current month.

EUR/JPY relevant levels

At the moment the cross is gaining 0.53% at 125.01 and faces the next up barrier at 125.58 (2020 high Aug.6) followed by 126.80 (monthly high Apr.17 2019) and finally 127.50 (2019 high Mar.1). On the flip side, a drop below 122.87 (monthly high Jan.16) would expose 121.14 (monthly high Mar.25) and then 120.13 (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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