- EUR/JPY looks to add to the rally near 121.00.
- The cross remains bid amidst a weaker Dollar.
- Focus of attention remains on Brexit deal and UK politics.
The upbeat momentum in the single currency continues to prop up the rally in EUR/JPY to the 121.00 region, where some decent resistance has emerged so far.
EUR/JPY focused on Brexit, risk appetite
The cross keeps its march north unabated for the second week in a row today, trading in the area of 3-month peaks in the 121.00 neighbourhood.
The positive momentum surrounding the European currency coupled with persistent outflows from the Japanese safe haven in favour of riskier assets have been sustaining the sharp rebound in the cross to levels last seen in late July.
In addition, the recently clinched Brexit deal has added to the broad-based positive momentum in the risk-complex, giving extra support to the upside in the cross.
In the meantime, markets’ attention remains on the EU Summit, which finishes later today and the Brexit vote at the UK Parliament tomorrow.
EUR/JPY relevant levels
At the moment the cross is gaining 0.05% at 120.90 and faces the next hurdle at 121.35 (monthly high Oct.17) seconded by 122.26 (200-day SMA) and then 123.35 (monthly high Jul.1). On the flip side, a breach of 119.79 (100-day SMA) would expose 118.35 (55-day SMA) and finally 117.07 (monthly low Oct.3/7).
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