EUR/JPY challenges 2-week highs around the 118.00 mark

• EUR/JPY picks up further pace and reaches the 118.00 area.
• Better mood in the riskier assets supports JPY-selling.
• US ADP report came in at 195K in August.

Increasing risk-on sentiment is sustaining the up move in EUR/JPY to fresh tops in the 118.0 neighbourhood on Thursday.

EUR/JPY up on JPY-selling

The cross is now advancing for the second session in a row, prolonging at the same time the rebound after Tuesday’s fresh 2019 lows in the 115.80 region.

Rising optimism in the risk-associated universe continues to bolster the selling pressure in the Japanese safe haven and bonds and lends extra oxygen to the upside momentum in the cross.

In addition, hopes of a US-China trade agreement have returned to the fore after officials said the negotiations between both parties are expected to resume early next month in Washington.

In the data space, German Factory Orders plunged 2.7% MoM in July, emphasizing the unremitting deterioration of the industrial sector in the first economy of the bloc.

Further data saw the US private sector adding 195K jobs during last month according to the latest ADP report, surpassing estimates.

EUR/JPY relevant levels

At the moment the cross is advancing 0.51% at 117.97 and faces the next up barrier at 119.58 (high Aug.13) seconded by 119.85 (55-day SMA0 and then 119.87 (high Aug.6). On the other hand, a breach of 115.86 (2019 low Sep.3) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016).