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  • The cross gains further ground on JPY weakness.
  • Rebound in US yields keeps weighing on JPY.
  • German IFO bettered estimates in March.

The renewed softer tone around the Japanese currency is giving extra wings to EUR/JPY to the area of 124.80, where seems to have found some resistance.

EUR/JPY bounces off sub-124.00 levels

After briefly testing fresh lows in sub-124.00 levels during early trade, the cross managed to regain some buying interest following a pick up in US yields, which in turn added to JPY depreciation.

It is worth mentioning that yields of the US 10-year note plummeted to levels last seen in January 2018 around 2.42% on Friday, forcing USD/JPY to also breach the critical support at 110.00 the figure, just to pick up some pace afterwards.

In the calendar, the German IFO unexpectedly came in on the strong side for the month of March, improving the sentiment around the shared currency and also collaborating with the up move.

EUR/JPY relevant levels

At the moment the cross is gaining 0.29% at 124.57 and faces the next up barrier at 125.23 (55-day SMA) seconded by 125.92 (21-day SMA) and finally 126.78 (high Mar.20). On the other hand, a breach of 123.82 (low Mar.22) would aim for 123.39 (low Jan.15) and then 118.82 (2019 low Jan.3).