- EUR / JPY rebounds strongly after falling to three-month lows last week.
- Rise in stocks and optimism weaken the dollar and the yen.
The EUR / JPY accelerated the bullish trend in the last hours before a rally of the EUR / USD and a weakening of the yen throughout the market due to a rise in the stock markets. Investors appear to be less fearful about the US presidential elections that are beginning.
EUR / JPY started the day below 122.00 and has just climbed to 122.74, the highest level since last Thursday. It remains in the high zone with the bullish tone intact.
The volatility in the markets is increasing. For now, accompanying a rise in stocks which is weakening the dollar and the yen mainly. Wall Street futures point to a positive open with gains between 0.50% and 1.50% in the main indices.
The key event of the day is the US presidential election. The main risk for the markets is that the difference between the two candidates, Biden and Trump, when counting the votes is very narrow and does not allow the proclamation of a clear winner. This would weigh on stocks and should be negative for EUR / JPY. A contrary scenario could boost it even more.
Credits: Forex Street
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