- EUR/JPY extends the recovery to the 125.70/75 band.
- The ECB left its monetary policy unchanged on Thursday.
- Investors’ attention is now on Lagarde’s press conference.
The prevailing risk-on sentiment is now lifting EUR/JPY to fresh 3-day highs in the 125.80 region on Thursday.
EUR/JPY now looks to Lagarde
EUR/JPY is advancing for the second session in a row in the second half of the week, regaining. The upper-125.00s on the back of the solid resumption of investors’ appetite for the risk complex.
In addition, the recent steady stance from the ECB at its event lent extra oxygen to the upbeat mood surrounding the European currency and the cross, all against previous expectations of a potential dovish message from the central bank.
Later in the session, ECB’s Christine Lagarde will hold her usual press conference. Earlier in the euro docket, Italian Industrial Production expanded more than forecasted during July.
In the US data space, the focus of attention will once again be on the weekly Claims seconded by August’s Producer Prices.
EUR/JPY relevant levels
At the moment the cross is advancing 0.31% at 125.71 and faces the next up barrier at 127.07 (2020 high Sep.1) followed by 127.50 (2019 high Mar.1) and finally 129.25 (monthly high Dec.2018). On the other hand, a drop below 124.41 (weekly low Sep.9) would expose 124.28 (weekly low Aug.11) and finally 122.87 (monthly high Jan.16).
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