EUR / JPY firm, bounces away from lows around 130.00

• EUR / JPY regains its bullish bias after a test of 130.00.
• German 10-year yields are trading at new highs around -0.18%.
• The Chicago Federal Reserve Index of the United States improved estimates by 0.29 in May.

The improved tone of the single currency after a corrective decline in the dollar helps the EUR/JPY to reverse part of last week’s sale.

EUR / JPY looking at the 131.00 level

The EUR / JPY has managed to reverse three consecutive daily declines so far and rebounded from 130.00 on the tone offered around the European currency, while the yen is modestly offered despite the upward momentum in US yields.

In fact, the recent spike in volatility, according to the VIX index (also known as “the panic index”), appears to continue to lend some wings to the safe-haven space, although the stance offered on the dollar appears to be enough to keep the dollar going. crossover at the upper end of the daily range.

There is nothing scheduled regarding data in the euro zone, while the ECB’s C. Lagarde will speak to the European Parliament later in the session.

In the United States, the Chicago Fed National Activity Index improved to 0.29 (from -0.09) for the month of May. Later, the 3- and 6-month bond issue should be seconded by J.Williams speech from the New York Fed (permanent voter, centrist).

Technical levels

So far, the cross is gaining 0.24% to 131.03 and a breakout of 132.09 (50-day SMA) would point to 133.02 (20-day SMA) and then 134.50 (October 2017 monthly high). On the other hand, the next support is at 130.04 (monthly low on June 21), followed by 129.58 (monthly low on April 23) and finally 128.29 (weekly low on March 24).