EUR/JPY of Highs, Still Close to 125.00

EUR/JPY of Highs, Still Close to 125.00

22 April 2016, 10:51
Roberto Jacobs

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).


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