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  • The better tone in EUR pushes the cross above 125.00.
  • The greenback keeps grinding lower ahead of FOMC.
  • ECB’s De Gindos sees low rates for the foreseeable future.

The march north in EUR/JPY remains unabated so far this week, now managing to regain the key 125.00 handle and flirt with the 10-day SMA in the 125.15/20 band.

EUR/JPY met support near 124.00

The cross is advancing for the fourth consecutive session on Wednesday, always on the back of a strong rebound in the sentiment surrounding the risk-associated space.

In addition, recent positive results in the euro area have also lent extra wings to the demand for the European currency in detriment of the safe haven JPY.

Moving forward, the FOMC meeting and key data releases in the US calendar should put the buck in centre stage as well as yields in the US money markets, which remain a key driver for the price action in the Japanese currency.

EUR/JPY relevant levels

At the moment the cross is gaining 0.12% at 125.15 and faces initial hurdle at 125.50 (55-day SMA) followed by 126.80 (high Apr.17) and finally 127.50 (2019 high Mar.1). On the flip side, a breach of 124.08 (low Apr.26) would aim for 123.65 (low Mar.28) and then 123.39 (low Jan.15).