- EUR / JPY adds to recent gains above 133.00
- The selling bias of the dollar gives wings to the euro.
- Final German GDP for the first quarter contracted by 1.8% in quarter-on-quarter terms and by 3.4% year-on-year.
The trend surrounding the greenback raises demand for the single currency and pushes the EUR / JPY past the mark of 133.00 on Tuesday.
EUR / JPY strengthens on strong appetite for risk
The EUR/JPY advances for the second consecutive session on Tuesday and extends the positive note from the beginning of the week.
In fact, widespread risk sentiment keeps the dollar depressed and reinforces the buying trend in the risk complex, which motivates the cross to trade very close to the all-time highs around 133.40.
Adding to the negative tone of the dollar, the yields of the US 10-year benchmark slide back to the zone below the 1.60% for now, extending the downtrend from last week’s highs around the 1.70%.
On the euro agenda, the german economy contracted by 1.8% quarterly in the January-March period and a 3.4% in the last twelve months. In addition, the survey IFO German showed that the business climate improved until 99.2 in the month of May, exceeding expectations.
Later, in the North American session, consumer confidence will take center stage, supported by data on housing and the weekly report of the EIA on the supply of crude.
Relevant EUR / JPY levels
So far, the crossing is gaining a 0.33% on 133.24 and an overcoming of 133.43 (May 19 2021 high) would pave the way for a test of 133.48 (April 2018 monthly high) and then 134.00 (round level). To the downside, the next support is at 131.64 (weekly minimum of May 12), seconded by 130.98 (monthly minimum of May 5) and finally 130.84 (50-day SMA).
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