EUR/JPY pushes higher to 2-week highs near 126.70

The cross advances further on a better mood in EUR.
Favourable risk appetite trends bolster the up move.
Brexit, US-China trade, keep driving the sentiment in markets.

Pablo Piovano FXStreet

The continuation of the better mood around the single currency is now pushing EUR/JPY to fresh multi-day peaks in the 126.70 region.

EUR/JPY now targets 127.50

The cross is prolonging its rally from monthly lows near 124.30 seen earlier in the month, up more than 2 cents already on the back of a renewed optimism in the riskier assets.

The better mood in the risk-complex has been hurting the demand for the safe haven JPY, motivating the cross to shift its focus to the area of YTD peaks in the mid-127.00s (March 1).

In the docket, the BoJ will release its minutes from the last meeting on Wednesday seconded by the EU Leaders Summit. Previously, the German/EMU ZEW survey is expected on Tuesday.

EUR/JPY relevant levels

At the moment the cross is gaining 0.28% at 126.58 facing the next up barrier at 126.62 (high Mar.18) seconded by 127.50 (2019 high Mar.1) and finally 128.00 (200-day SMA). On the other hand, a breach of 125.91 (21-day SMA) would aim for 124.27 (low Mar.8) and then 123.39 (low Jan.15).

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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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