- EUR/JPY rebounds from lows in the 130.00 region.
- Higher US yields puts the yen under further selling pressure.
- US Producer Prices will take centre stage later in the session.
The renewed soft note surrounding the Japanese yen lifts EUR/JPY to the area of daily highs around 130.45/50.
EUR/JPY up on JPY-selling
EUR/JPY regains upside traction following Thursday’s pullback, although it met quite decent support in the 130.00 neighbourhood for the time being.
The strong daily rebound in US yields favours the selling bias around the Japanese safe haven and therefore pushes the cross to shouting distance from yearly highs around 130.70.
Indeed, yields of the US 10-year note advance firmly to the 1.67% area after briefly trading in the vicinity of the 1.60% yardstick later on Thursday.
In the euro docket, the Industrial sector was in the centre of the debate earlier in the session, as Industrial Production in Germany, France and Spain contracted at a monthly 1.6%, 4.7% and 2.1%, respectively, during February.
No data scheduled in Japan, while February’s Producer Prices will be in the limelight later in the US calendar.
EUR/JPY relevant levels
At the moment the cross is gaining 0.22% at 130.41 and faces the next hurdle at 130.68 (2021 high Apr.7) seconded by 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the other hand, a drop below 128.68 (50-day SMA) would expose 128.29 (weekly low Mar.24) and finally 127.28 (100-day SMA).
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