EUR/JPY moves higher and tests 124.80, multi-session tops

EUR/JPY flirts with the 55-day SMA around 124.70/80.
Risk-on sentiment weighs on the safe haven Yen.
Stimulus rumours keep feeding the risk-associated galaxy.

Pablo Piovano FXStreet

The persistent upbeat mood surrounding the riskier assets boosts the strong advance in EUR/JPY to the proximity of the key barrier at 125.00 the figure.

EUR/JPY focuses on risk trends, data

EUR/JPY is up for the third consecutive session on turnaround Tuesday and extends further the rebound from last week’s lows in the 123.00 neighbourhood, where some solid contention seems to have emerged so far.

In fact, market chatter around a package of fiscal stimulus keeps sustaining the sentiment among investors and sparks further selling pressure in the Japanese yen, particularly after Treasury Secretary S.Mnuchin and House Speaker N.Pelosi said talks could resume at some point later on Tuesday.

Data wise in the euro bloc, August’s Current Account surplus narrowed to €21.8 billion in August (from €25.5 billion). Later in the NA session, Building Permits and Housing Starts will take centre stage along with speeches by FOMC’s R.Quarles and C.Evans.

EUR/JPY relevant levels

At the moment the cross is gaining 0.59% at 124.79 and faces the next barrier at 125.08 (monthly high Oct.9) seconded by 126.46 (weekly high Sep.10) and then 127.07 (2020 high Sep.1). On the downside, a move below 123.48 (100-day SMA) would aim for 123.01 (monthly low Oct.15) and finally 122.37 (monthly low Sep.28).

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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