- EUR / JPY regains the optimistic mood and the 130.00 level.
- The final February CPI of the EMU rose 0.2% month-on-month and 0.9% year-on-year.
- The FOMC event will be published later in the American session.
Increased selling pressure in the Japanese safe haven makes the EUR/JPY back to the area above 130.00 on Wednesday.
EUR / JPY centered on the Fed
After two consecutive daily pullbacks, the EUR / JPY now regains its smile and manages well to retake the 130.00 level and above.
In fact, and as usual in past sessions, higher US yields sustain the tone offered around the Japanese yen and reinforce another bullish attempt at the cross, which is still on track to revisit the 2021 highs. in the region of 130.50 in the near future.
Looking at global markets, a consolidation mood prevails ahead of the key FOMC meeting to be held later in the American session, and Powell is expected to reveal an optimistic revision for the US economy unchanged. the status quo of monetary policy and the mega-accommodative stance of the Federal Reserve.
Previous figures for the EMU CPI showed that overall consumer prices increased 0.2% month-on-month and 0.9% year-on-year. Core prices rose at a monthly rate of 0.1% and 1.1% over the previous year.
Relevant levels
Right now, the cross is gaining 0.23% to 130.01 and faces the next hurdle at 130.48 (March 15, 2021 high) followed by 131.00 (psychological level) and then 131.98 (July 17, 2018 high). On the other hand, a drop below 128.99 (20-day SMA) would expose 128.18 (March 2 monthly high) and finally 127.30 (February 17 low).
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