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  • EUR/JPY extends the side-lined theme above 130.00.
  • US yields, yen stick to the consolidative trade so far.
  • Investors’ focus shifts to US Consumer Sentiment, housing data.

The better note in the risk-associated universe sustains the buying interest in the European currency and pushes EUR/JPY to the mid-130.00s so far on Friday.

EUR/JPY looks to risk trends, data

The consolidation mood prevails in EUR/JPY since the beginning of the month, always above the 130.00 mark and amidst alternating risk appetite trends and diminishing yields in the US bond market.

In fact, the selling bias in the greenback echoes the renewed downtrend in yields of the US 10-year note and lends wings to the euro, all propping up the so far daily gains in the cross.

Earlier in the Asian trading hours and supporting the risk-on mood, Chinese GDP figures showed the economy expanded at an annualized 18.3% during the January-March period, Industrial Production rose 14.1% on a year to March and Retail Sales expanded more than 34% YoY during the same period.

Closer to home, final headline inflation figures in the broader Euroland rose 0.9% MoM in March and 1.3% from a year earlier. The Core CPI also matched the preliminary readings and gained 0.9% inter-month and 1.0% on a yearly view.

Next of note in the NA session will be the release of the advanced Consumer Sentiment gauge for the current month along with housing data for the month of March.

EUR/JPY relevant levels

At the moment the cross is gaining 0.22% at 130.38 and a move past 130.68 (2021 high Apr.7) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the downside, the next support lines up at 129.57 (low Apr.8) followed by 129.07 (50-day SMA) and finally 128.29 (weekly low Mar.24).