EUR/JPY Takes-Out Monday’s High, 124 Back on Sight?
The EUR/JPY cross
extends its bullish run into a second day today, reversing almost a
quarter of BOJ’s inaction-led slide, as the yen drops sharply across the
board amid risk-on.
EUR/JPY drops on broad yen weakness
The
EUR/JPY pair now rises 0.41% to 123.80, hovering close to fresh
eight-day highs of 123.86 reached last minutes. The cross in the EUR/JPY
maintains the bid tone in the Asian trades, extending the rebound
staged in the previous session, mainly driven by the ongoing weakness in
the Japanese currency against its American counterpart amid improving
appetite towards riskier assets as most major Asian indices stage a
solid rebound.
While the EUR/USD pair trades modestly flat, doing
little to aid the upward streak seen in the EUR/JPY cross. While the
EUR calendar remains absolutely data-empty, focus now shifts towards the
US docket, with the only US JOLTS jobs openings data on the cards.
EUR/JPY Levels to consider
The pair has an immediate resistance at 124 (round number/ post-BOJ highs) and from there to 124.72 (50-DMA). On the flip side, support is seen at 123.59/58 (10 & 20-DMA) below which it could extend losses to towards 122.72 (1h 50, 100 & 200-SMA).
