- EUR / JPY extends gains to the 129.60 region on Friday.
- Rising US yields keep the selling mood unchanged around the yen.
- US nonfarm payrolls will take center stage later in the American session.
Rising US yields hold up the sell bias and sound around the Japanese yen well and motivate the EUR/JPY to extend the bullish momentum well above 129.00.
EUR / JPY attentive to the US economic agenda
EUR / JPY is trading on a positive bias for the fifth consecutive session at the end of the week, always supported by the persistent offered tone surrounding the Japanese yen.
Indeed, the rally in US yields continues to give the dollar wings and encourage the JPY bears to stay in control, all transforming into additional gains at the cross and opening the door for a possible visit to the highs of 2021 in the 130.00 zone (February 25).
Similarly, USD / JPY reached the levels last seen in June 2020 above 108.00.
At the beginning of the session, German factory orders expanded more than expected to 1.4% monthly during January. Later, investors will closely follow another release of Non-Farm Payrolls (182,000 expected h, knh) and the unemployment rate (6.3% expected).
Relevant levels
Right now, the cross is gaining 0.11% at 129.31 and facing the next resistance at 129.87 (February 24, 2021 high) followed by 130.00 (psychological level) and then 130.14 (November 7, 2018 monthly high). On the other hand, a drop below 128.18 (weekly / monthly high on March 2) would target 127.30 (low on February 17) and finally 127.01 (50-day SMA).
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