- EUR / JPY extends the daily rally above 130.00.
- The dollar remains on the defensive across the board.
The tone offered around the dollar helps the EUR/JPY to regain strength above 130.00 on Monday.
EUR / JPY rises on risk appetite
EUR / JPY is advancing for the second session in a row and manages to hit fresh multi-day highs above 130.00 at the start of the week.
Indeed, the overall better mood surrounding the risk space raises US yields and favors the sell bias in the Japanese safe haven, all at the same time undermined by the dollar’s bearish momentum.
On the economic agenda, data indicated that the German business climate decreased to 100.8 in July, according to the IFO survey. In the US, US new home sales fell 6.6% monthly in June to a seasonally adjusted annual rate of 676,000.
Technical levels
So far the cross is gaining 0.15% to 130.27 and a breakout of 130.67 (38.2% Fibonacci from January to June rally) would expose 131.08 (weekly high on July 13) and then 132.43 (monthly high on July 1) . On the downside, immediate support is located at 128.59 (monthly low on July 20), followed by 128.54 (61.8% Fibonacci from the January-June rally) and finally 128.47 (200-day SMA).
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