EUR/JPY Firmer, Closer to 124.00
The offered tone around the Japanese Yen is bolstering the ongoing upside in EUR/JPY, currently hovering over 123.80.
EUR/JPY up on BoJ easing rumours
The
cross is managing to advance for the second session in a row today as
the safe haven JPY remains under pressure via rumours of further easing
by the BoJ, likely to be announced at next week’s meeting.
Adding
to the ongoing JPY-selling, the risk appetite sentiment has been
reinforced after positive results from Chinese trade data have surprised
markets to the upside. Furthermore, BoJ’s Harada argued the central
bank could use a combination of easing measures in case of need.
EUR/JPY relevant levels
At
the moment the cross is gaining 0.45% at 123.69 facing the next
resistance at 124.38 (38.2% Fibo of 121.98-128.26) followed by 125.66
(20-day sma) and then 126.38 (55-day sma). On the flip side, a break
below 122.52 (low Apr.7) would open the door to 121.98 (2016 low Mar.1)
and then 118.74 (2013 low Feb.25).
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