- EUR / JPY moved away from lows in the 130.00 area.
- Rising US yields put the yen under further selling pressure.
- US producer prices will take center stage later in the session.
The weakening tone surrounding the Japanese yen raises the EUR/JPY to the area of daily highs around 130.45 / 50.
EUR / JPY rises due to the sale of JPY
EUR / JPY regains traction to the upside after Thursday’s pullback, although for the moment it found fairly decent support at the 130.00 area.
The strong daily rally in US yields favors the sell bias around the Japanese safe haven and thus pushes the cross close to the yearly highs around 130.70.
In fact, 10-year US bond yields are climbing steadily to the 1.67% zone after briefly trading near the 1.60% level later on Thursday.
On the euro agenda, the industrial sector was at the center of the debate at the beginning of the session, as industrial production in Germany, France and Spain contracted to 1.6%, 4.7% and 2.1% monthly, respectively, during February .
There is no data scheduled in Japan, while February producer prices will be in the spotlight later in the US calendar.
Relevant levels
Right now, the cross is gaining 0.22% at 130.41 and faces the next hurdle at 130.68 (April 7, 2021 high) seconded by 131.00 (psychological level) and then 131.98 (July 17, 2018 high). On the other hand, a dip below 128.68 (50-day SMA) would expose 128.29 (March 24 weekly low) and finally 127.28 (100-day SMA).
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