EUR/JPY of Highs, Still Close to 125.00
The broad-based JPY weakness is now propelling EUR/JPY to test the 125.00 neighbourhood, challenging weekly tops at the same time.
EUR/JPY up on BoJ easing talk
After
an ephemeral test levels just shy of the 125.00 handle, the cross has
surrendered some pips and is now returning to the 124.70 area, although
keeping important gains for the day.
Market chatter that the BoJ
could implement negative rates on loans to institutions within the
financial sector have been weighing on JPY since early trade, giving
extra legs to the cross and allowing the reversion from yesterday’s
pullback.
Data wise in Euroland, advanced manufacturing and
services PMIs for the month of April have come in mixed, leaving the
sentiment unchanged around EUR for the time being.
EUR/JPY relevant levels
At
the moment the cross is gaining 0.92% at 124.70 facing the next
resistance at 125.45 (55-day sma) followed by 125.74 (61.8% Fibo of
128.26-121.66) and then 127.73 (100-day sma). On the flip side, a break
below 121.66 (2016 low Apr.18) would open the door to 118.74 (2013 low
Feb.25).
