EUR/JPY recedes from tops near 130.70

EUR/JPY reverses the initial pessimism and advances to 130.70.
Higher US yields favour further JPY-selling on Monday.
US Durable Goods Orders expanded 0.5% MoM in March.

Pablo Piovano FXStreet

The recovery in US yields motivate JPY sellers to return to the markets and push EUR/JPY to fresh multi-day highs in the 130.70 region on Monday.

EUR/JPY targets the YTD highs

EUR/JPY looks to extend Friday’s uptick and keeps the positive performance near the 130.70 region, paving the way at the same time for a potential test of the so far yearly peaks in levels just shy of 131.00 the figure (April 20).

The recovery in US yields collaborates with the selling pressure in the safe haven JPY and therefore sustains the upside momentum in the cross for the time being despite the selling bias hitting the European currency.

Moving forward, the Bank of Japan (BoJ) will hold its meeting on Tuesday, with consensus among investors leaning towards the continuation of the current mega-accommodative stance, although a modification of the current bond-purchase programme has not been ruled out.

EUR/JPY relevant levels

So far, the cross is down 0.08% at 130.37 and faces the next support at 129.44 (50-day SMA) followed by 128.29 (weekly low Mar.24) and finally 127.90 (100-day SMA). On the other hand, a surpass of 130.97 (2021 high Apr.20) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17).

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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