- EUR / JPY continues to be driven by risk appetite and is approaching the highs for the year.
- Since the beginning of the week the cross has risen almost 200 pips and accumulates 450 from the November floor.
The IR/ JPY remains strong after the breaking of the strong barrier on Tuesday at 125.00 and recently reached 126.29, the highest level since September 10. The price remains in the zone of the highs with the bullish tone intact.
The EUR / JPY bullish momentum is supported by risk appetite as well as technical factors. After having slowed the rises for months in the 125.00 zone, the break of this level triggered stops and new purchases, giving an extra push to the upside.
The euro on Wednesday lost some strength, with the EUR / USD retreating from annual highs. Economic data from the region showed a fall in the unemployment rate in the Eurozone in October and a higher than expected rise in German retail sales in October.
In the US, the ADP private sector employment report will be published, which may affect the EUR / JPY through the yen. The Japanese currency remains among the weakest, in a context of optimism in the stock markets and rising Treasury bond yields.
Technical levels
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