- The cross is reverting part of yesterday’s pullback.
- Recent up move clinched 2019 tops in the mid-127.00s.
- EMU Services PMI came in on a positive note in February.
The generalized softer tone around the Japanese currency is now lifting EUR/JPY to the vicinity of the key barrier at 127.00 the figure.
EUR/JPY supported by the 100-hour SMA
The cross has been trading within a gradual uptrend since early February, managing to rebound from the 124.00 neighbourhood, and always amidst the improved mood in the risk-associated space in turn supported by hopes of a US-China trade agreement.
The risk-on trade has been putting the Japanese safe haven under persistent selling pressure in past weeks, being almost the exclusive driver of the continuation of the upside momentum in the cross.
Data wise in Euroland, Services PMI surprised to the upside in February, while Retail Sales in the broader euro area also expanded more than expected.
EUR/JPY relevant levels
At the moment the cross is gaining 0.15% at 126.89 and a surpass of 127.50 (2019 high Mar.4) would expose 128.10 (200-day SMA) and finally 129.24 (high Dec.13 2018). On the other hand, the next support lines up at 126.71 (100-hour SMA) seconded by 126.22 (10-day SMA) and then 125.51 (21-day SMA).