EUR/JPY reverses the leg lower, reclaims 122.00 and above
- EUR/JPY trades in 2-day highs beyond the 122.00 handle.
- Recent support emerged in the mid-121.00s.
- The offered bias in the Japanese currency fuels the upside.
The better tone in the shared currency combined with the offered bias around the Japanese safe haven is lifting EUR/JPY to fresh 2-day highs beyond 122.00 the figure.
EUR/JPY keeps looking to trade, risk trends
After bottoming out in 4-month lows in the 121.50 region on Wednesday, the cross has managed to regain some composure and reclaim the critical 122.00 barrier and above amidst heightened trade concerns and the generalized decline in global yields.
In fact, and despite trade jitters appear somewhat subsided today, the US-China protracted dispute and its potential impact on the world growth remains the exclusive driver of the broader risk appetite trends.
Today, and moving on to another scenario, global yields are recovering some ground lost in past hours after falling to multi-month lows in response to a pick up of the risk-off sentiment.
In the calendar, Spanish preliminary inflation figures have come in on the soft side for the month of May, while the publication of the second estimate of Q1 GDP will be the salient event later in the day.
EUR/JPY relevant levels
At the moment the cross is advancing 0.17% at 122.19 and faces the next hurdle at 122.99 (21-day SMA) followed by 123.75 (high May 21) and finally 124.44 (55-day SMA). On the other hand, a breach of 121.58 (low May 29) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’).