- EUR/JPY moves higher on better risk-on mood.
- The cross clinches tops beyond 117.00 the figure.
- EMU Retail Sales contracted 0.6% during July.
The better mood in the risk-associated space is pushing EUR/JPY further north of the 117.00 mark on Wednesday, recording at the same time new three-day peaks.
EUR/JPY bounces off YTD lows near 115.80
After bottoming out in the 115.80 region on Tuesday, the cross has managed to regain traction and further composure following a change of heart around he Greenback, particularly after the ISM manufacturing dropped into the contraction territory in August.
In fact, the poor ISM print sparked a wave of selling pressure in the buck in favour of the riskier assets, triggering as well a sharp rebound in US yields. Market perception of a potential recession in the US economy in the next couple of years and the probable easing of monetary conditions by the Fed keeps supporting the upbeat note in the risk-associated complex so far today.
In addition, no news on the US-China trade front has been also lending support to the generalized positive tone in the global markets.
In the docket, final services PMIs in Euroland surprised to the upside in general, while Retail Sales in the bloc contracted 0.6% MoM during July.
EUR/JPY relevant levels
At the moment the cross is advancing 0.65% at 116.99 and faces the next hurdle at 117.08 (high Sep.4) seconded by 117.77 (21-day SMA) and then 119.87 (high Aug.6). On the other hand, a breakdown of 115.86 (2019 low Sep.3) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016).
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