- EUR / JPY bounces away from recent lows at 129.50.
- The dollar remains offered amid increased appetite for risk.
- The ECB published its accounts for the June meeting.
The offered tone in the dollar allows additional gains in the single currency, while raising the EUR/JPY above the psychological level of 130.00.
EUR / JPY finds support around 129.50
After bottoming out at 129.50 on Thursday, the EUR / JPY managed to regain some composure along with the return of the offered bias around the dollar, allowing gains in the euro.
Additionally, investors remain skewed toward the venture complex, which in turn underpins selling pressure at the Japanese safe haven. Also, another rally in US 10-year yields helps the latter.
Previously, the ECB published its Accounts for the June meeting, noting that some members were in favor of reducing the pace of asset purchases. ECB members were also concerned that higher market rates could turn into a tightening of financial conditions and agreed to analyze the current temporary spike in inflation.
On the US agenda, the Fed will release the Monetary Policy Report later in the session.
Technical levels
So far, the cross is up 0.45% to 130.51 and a breakout of 131.05 (100-day SMA) would point to 132.34 (50-day SMA) and finally 132.69 (June 23 weekly high). On the downside, immediate support comes at 129.62 (July 8 monthly low) followed by 128.29 (March 24 weekly low) and then 128.15 (200-day SMA).
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