- EUR/JPY surpassed the 122.00 mark, or fresh multi-day peaks.
- Rising US yields support JPY-selling and push the cross higher.
- Chief Powell’s testimony, FOMC minutes next of relevance.
Rising US yields are lending extra wings to the selling pressure around the Japanese currency and are therefore propping up the upside momentum in EUR/JPY beyond 122.00 the figure.
EUR/JPY in 6-day tops
The cross is advancing for the fifth consecutive session on Wednesday, finally managing to reclaim the key 122.00 barrier and record at the same time fresh multi-day peaks.
Rising US yields are lending extra oxygen to the selling appetite surrounding the Japanese safe haven, which in turn underpins the move higher. In addition, the sharp rebound in yields of the German 10-year Bund is also collaborating with the renewed optimism in EUR via shrinking spread differentials vs. the US 10-year note.
The cross should be under scrutiny later today in light of the congressional testimony by Chief J.Powell and the subsequent publication of the FOMC minutes of the June meeting. Investors will closely follow these events in search for any hint of rate cuts in the next months – particularly later this month as well as the Committee’s view on the economy.
EUR/JPY relevant levels
At the moment the cross is gaining 0.18% at 122.21 and faces the next hurdle at 122.32 (high Jul.10) seconded by 122.60 (55-day SMA) and then 123.35 (high Jul.1). On the other hand, a breakdown of 121.31 (low Jul.3) would expose 120.95 (low Jun.21) and finally 120.78 (low Jun.3).
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