- EUR/JPY attempts to break above the consolidative range.
- The daily bullish move run out of steam in the 121.60 region.
- US ISM Non-Manufacturing next of relevance in the NA session.
The better mood in the risk complex gives extra wings to the single currency and pushes EUR/JPY to the area of ulti-day peaks in the 121.60/65 band on Monday.
EUR/JPY focused on risk trends, data
EUR/JPY is adding to Friday’s positive session and regains the 121.00 mark and above always sustained by the continuation of the upbeat sentiment in the riskier assets despite the coronavirus pandemic stays far from abated.
In fact, extra support for the shared currency comes after recent positive results in fundamentals of the broader Euroland hinted at the likeliness of a “V”-shaped recovery, relegating to some extent jitters following fresh COVID-19 outbreaks.
In the docket, Investors Confidence in the euro bloc tracked by the Sentix Index improved to -18.2, although still navigates the negative territory. Earlier, Retail Sales in the region expanded more than expected and German Factory Orders showed a stark rebound in May, although the reading came in below consensus.
Later in the NA session, all the attention is expected to be on the ISM Non-Manufacturing seconded by the final print of Markit’s Services PMI for the month of June.
EUR/JPY relevant levels
At the moment the cross is gaining 0.51% at 121.53 and faces the next hurdle at 122.11 (high Jun.16) seconded by 122.87 (monthly low jun.16) and then 124.43 (2020 high Jun.5). On the other hand, a drop below 119.64 (200-day SMA) would expose 119.31 (monthly low Jun.22) and then 118.81 (100-day SMA).
Some correction in the cross is not ruled out in the very near-term as per overbought conditions in the hourly chart.
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