- The cross gathers further traction beyond the 125.00 handle.
- Risk-on sentiment continues to support the up move.
- US-China trade negotiations to resume later in the week.
The now better tone in the European currency is helping EUR/JPY to advance further and print fresh daily highs near 125.20.
EUR/JPY now targets 126.00 and beyond
After three consecutive daily pullbacks, the cross has now managed to pick up pace and advance to new 2-day highs beyond 125.00 the figure, always sustained by the improved mood in the risk-associated universe.
Recent progress in the US-China trade talks has been collaborating with the upbeat sentiment in the global riskier assets, while the continuation of the negotiation is expected later this week in Washington.
Nothing relevant in the docket today, while the ZEW survey will be published on Tuesday and advanced February PMIs in Euroland expected on Thursday along with ECB minutes.
In japan, key inflation figures (Friday) will be the sole release in an otherwise empty calendar.
EUR/JPY relevant levels
At the moment the cross is gaining 0.40% at 125.21 and a surpass of 125.54 (high Feb.13) would expose 125.78 (55-day SMA) and finally 125.94 (high Feb.4). On the other hand, the next support lines up at 124.22 (low Feb.15) seconded by 124.17 (low Feb.8) and then 123.39 (low Jan.15).
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