EUR/JPY stays bid near 126.20, weekly tops
- EUR/JPY pushes higher and surpasses the 126.00 mark.
- The softer greenback lends support to the euro on Tuesday.
- ECB, BoJ remains the salient events later this week.
The improved sentiment surrounding the single currency motivates EUR/JPY to partially reverse the recent sharp leg lower and reclaim the key 126.00 mark and beyond.
EUR/JPY now targets the YTD tops at 127.50
EUR/JPY halts a 7-day negative streak after being rejected from so far yearly tops in the mid-127.00s earlier in the month.
Tuesday’s correction lower in the greenback lends fresh oxygen to the single currency so far and helps the cross to bounce off Mondays’ 2021 lows just above 125.00 the figure.
Indeed, while US markets resume the normal activity after Monday’s MLK Day holiday, the dollar looks offered amidst a consolidative mood in yields of the US 10-year reference just below the 1.12% yardstick.
Earlier in the euro docket, the ZEW Survey showed the Economic Sentiment in both Germany and the broader Euroland improved to 61.8 and 58.3, respectively, for the current month.
Across the pond, the only release will be the TIC Flows for the month of November.
Later in the week, all the attention will be on the ECB and BoJ monetary policy meetings.
EUR/JPY relevant levels
At the moment the cross is gaining 0.77 at 126.15 and faces the next up barrier at 127.49 (2021 high Jan.7) followed by 130.18 (monthly high Nov.7 2018) and then 133.13 (monthly high Sep.21 2018). On the other hand, a drop below 125.08 (2021 low Jan.18) would aim for 124.75 (100-day SMA) and finally 124.55 (50% Fibo of the November-January rally).
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.
