- The cross reverses the recent decline, keeps the 125.00 handle.
- Positive risk trends bolster the up move in the cross.
- Weekly support emerged near 124.80.
Following two consecutive daily pullbacks, EUR/JPY has managed today to regain composure and advance to the 125.30/40 band, where lies the key 55-day SMA.
EUR/JPY focused on risk trends
The cross has returned to the positive territory so far today in response to the still better mood in the riskier assets, which in turn echoed in an increasing selling pressure around the Japanese safe haven. The cross bottomed out in the 124.70/80 band in the wake of the ECB event on Wednesday, although the shared currency managed to reverse the move later in the session.
In fact, JPY came under pressure today following a rebound in yields of the US 10-year note to the proximity of the 2.49% region, all boosting USD/JPY to daily highs around 111.20 and sustaining the sentiment in the cross.
Data wise in Euroland today, German final inflation figures for the month of March matched preliminary prints, while EMU Industrial Production figures are expected tomorrow.
EUR/JPY relevant levels
At the moment the cross is gaining 0.12% at 125.28 and faces the next hurdle at 125.88 (100-day SMA) seconded by 126.78 (high Mar.20) and finally 126.92 (200-week SMA). On the other hand, a breach of 124.77 (low Apr.10) would expose 123.65 (low Mar.28) and then 123.39 (low Jan.15).
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