- The cross met tough resistance in the 55-day SMA around 125.10.
- The better mood in the single currency helps the cross to move higher.
- German Industrial Production surprised to the downside in January.
EUR/JPY trades on a firm note at the beginning of the week although the daily upside met strong resistance in the 125.10/20, where converge the 55-day SMA.
EUR/JPY bounces off lows near 124.30
The cross is finally posting some gains after five consecutive daily pullbacks, including fresh monthly lows in the boundaries of 124.30 recorded last Friday.
The downside momentum in the cross in past sessions was exacerbated following the dovish message from the ECB at its meeting last Thursday, where announced fresh TLTROs and has practically ruled out any move on rates this year.
Today’s calendar in Euroland showed Industrial Production in Germany contracted at a monthly 0.8% during January, while the trade surplus shrunk to €18.5 billion during the same period, below estimates.
Later in the day, US Retail Sales are due across the pond, while markets’ attention will be on the crucial Brexit votes later in the week and the BoJ meeting on Friday.
EUR/JPY relevant levels
At the moment the cross is gaining 0.10% at 124.98 facing the next up barrier at 125.20 (high Mar.11) seconded by 125.59 (21-day SMA) and finally 126.02 (10-day SMA). On the other hand, a breach of 124.27 (low Mar.8) would aim for 124.17 (low Feb.8) and then 123.39 (low Jan.15).
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