EUR/JPY upside capped near 126.50, 100-day SMA

• The cross looks to add to recent gains above the 126.00 handle.
• The 100-day SMA in the mid-126.00s caps the upside.
• EMU, German ZEW Survey next of relevance in the calendar.

The better tone in the single currency keeps supporting the up move in EUR/JPY, although the positive momentum failed to break above the key 100-day SMA in the mid-126.00s for the time being.

EUR/JPY looks to data

The cross is adding to Monday’s gains beyond 126.00 the figure, up for the second consecutive week and almost fully recovering the sharp sell off recorded in early March in the wake of the ECB meeting.

EUR/JPY, in the meantime, appears consolidative in the upper bound of the weekly range against the backdrop of extreme low volatility and rising cautiousness in light of the upcoming FOMC meeting on Wednesday evening.

The upsidde momentum in the cross remains well supported by the generalized offered bias surrounding the Japanese safe haven, all amidst markets’ preference for riskier assets.

Later in the session, the German/EMU ZEW survey is next on tap ahead of the speech by ECB’s P.Praet and EMU’s Labour Cost Index. In the Japanese docket, the BoJ will piblish its minutes from the last meeting on Wednesday, although it is unlikely to move the dial around JPY.

EUR/JPY relevant levels

At the moment the cross is gaining 0.02% at 126.34 facing the next up barrier at 126.69 (high Mar.18) seconded by 127.50 (2019 high Mar.1) and finally 127.99 (200-day SMA). On the other hand, a breach of 125.95 (21-day SMA) would aim for 124.27 (low Mar.8) and then 123.39 (low Jan.15).