- EUR/JPY met daily support in the 121.90/85 band.
- EUR-buying is now lifting the cross from recent lows.
- ZEW Survey came in above estimates in January.
The now better mood surrounding the single currency has given extra wings to EUR/JPY, lifting it back above the 122.00 mark.
EUR/JPY supported in sub-122.00 levels
After bottoming out in the 121.90 region during early trade, the cross has managed to regain some poise and retake the key 122.00 yardstick and advance to the 122.20/30 band, returning to the positive territory at the same time.
The initial risk-off sentiment appears to have ebbed somewhat, fuelling outflows from the safe haven universe and sparking a selling bias around the Japanese yen.
In addition, (very) auspicious results from the ZEW Survey showed the Economic Sentient in both Germany and the euro area rebounded markedly in January, adding to the idea that the region could have left the worst behind, although it is not out of the woods yet.
Earlier in the Asian session, the BoJ matched the broad consensus and left the monetary policy unchanged at its meeting. The central bank also revised higher its forecasts for economic growth although it now sees inflation a tad lower for the current year.
EUR/JPY relevant levels
At the moment the cross is gaining 0.01% at 122.25 and is expected to meet the next hurdle at 122.87 (2020 high Jan.16) seconded by 123.35 (monthly high Jul.1 2019) and then 123.75 (monthly high May 21 2019). On the other hand, a breach of 121.86 (weekly lows Jan.21) would aim for 120.89 (200-day SMA) and finally 120.16 (2020 low Jan.3).
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