- The euro is up against the yen for the fifth time in the past six business days.
- EUR / JPY breaks above 130.00 and rises above the 100-day SMA.
The EUR/JPY it is rising sharply on Monday supported by improving risk sentiment and stability in US yields. The cross reached levels above 130.00 for the first time since mid-November.
Above 130.00?
The cross rose to 130.09 and remains firm above 130.00 as the rally continues from 127.50 (December 20 low). The euro is now above the 100-day SMA and testing the 55-day SMA. A daily close clearly above 130.00 should indicate more gains. The next strong resistance is at 130.75.
A dip back below 129.75 would ease the upward pressure, suggesting that the euro is not yet ready for a run above 130.00.
Santa rally
The S & p500 is up 0.90%, trading at all-time highs, while the Nasdaq is up 1.06%. At the same time, crude oil gains 2.70%. Risk appetite in financial markets is helping demand, favoring crosses like EUR / JPY.
Another key factor on Monday is the rally in USD / JPY. The pair is approaching 115.00. US yields are mostly flat on Monday, weakening the yen, which is also under pressure from risk sentiment.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
