EUR / JPY extends recovery and approaches 130.00

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  • EUR / JPY rises for the second day and reaches 129.70.
  • On Thursday the Governing Board of the European Central Bank will meet.

EUR / JPY is rising for the second day in a row on Wednesday and extends recovery after falling to 128.58 on Tuesday, the lowest level since late March. The quote climbed in the European session to 129.71 and then retraced to find support above 129.50.

Fear gives way, JPY loses strength

The yen it continues to decline in the market after the large appreciation on Monday. That day, it had been helped by the steep decline in equity markets. The rebound in stock prices is dragging on Wednesday, which, coupled with a rise in Treasury yields, continues to push out the yen.

Wall Street had one of the best days in four months on Tuesday and on Wednesday the futures of the major US stock indices rose 0.30% on average. If the good moment continues, the EUR / JPY would be favored.

The euro remains relatively firmly in the market in the week of the meeting of the European Central Bank (ECB). The EUR / GBP remains in the zone of highs in months, while the EUR / USD manages to sustain above 1.1750 / 60.

On Thursday the ECB will announce the monetary policy decision. No changes are expected in the interest rate, or in the purchase program. Yes, there will be changes by the central bank in the way it communicates, which may have an impact on the market.

Technical levels

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