The EUR / JPY skyrocketed and rose nearly 200 pips in the past two hours, fueled by appetite for risk that flooded markets following reports on Pfizer’s coronavirus vaccine studies.
The crossing climbed from 123.15 to 124.92, reaching the highest level since October 20. It is trading at 124.70 / 75, having the most important rise in months. In case of continuing to climb, it would test 125.00 and the October highs that are at 125.10.
The bullish tone remains intact, and if the euro closes at current levels, it would do so on key day moving averages. This would indicate that if it broke 125.00, it would be ready to extend the bullish run.
Vaccine optimism unleashes strong movements
Pfizer announced that studies by the vaccine showed 90% effectiveness. This sent share prices skyrocketing throughout the world. The main Wall Street indices climb about 4%.
Among currencies, the yen fell sharply and the dollar weakened, albeit less significantly. The USD / JPY rally was the main support of the EUR / JPY. While the EUR / USD momentarily reached levels above 1.1900, it is trading without significant changes around 1.1885.
Credits: Forex Street
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