- EUR/JPY advances to multi-day highs in the mid-129.00s.
- Higher US yields supports the selling bias in the Japanese yen.
- German flash CPI for the month of March is due next.
Rising US yields sustain the selling stance in the Japanese yen and push EUR/JPY to fresh tops in the 129.50 region on turnaround Tuesday.
EUR/JPY targets 130.00 and beyond
EUR/JPY reverses Monday’s pessimism and clinches multi-day highs in the mid-129.00s on the back of the persistent downside pressure in the Japanese currency, which is in turn fueled by US yields trading in tops recorded more than a year ago.
Indeed, yields of the key US 10-year benchmark approach the 1.80% level, as investors keep adjusting their positions to the expected higher fiscal spending in the next months as well as Biden’s plan to boost the infrastructure sector.
Later in the session, the German flash inflation figures for the month of March will take centre stage, while the Conference Board’s Consumer Confidence gauge will be in the limelight in the NA session.
EUR/JPY relevant levels
At the moment the cross is gaining 0.28% at 129.50 and faces the next hurdle at 130.66 (2021 high Mar.18) followed by 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the other hand, a drop below 128.18 (monthly low Mar.2) would expose 128.03 (50-day SMA) and finally 127.30 (low Feb.17).