- Combination of EUR/USD stability and yen weakness boost EUR/JPY.
- Break of 132.15 gave more force to the movement.
- Ahead: US inflation data and jobless claims.
EUR/JPY broke the 132.15 area after several days of trading sideways and jumped to 132.60, hitting a three-month high. It then pulled back moderately and trades at 132.45/50, validating most of the rally and still with a bullish bias.
The yen experienced weakness throughout the market after it was known that the Bank of Japan will buy an “unlimited” amount of 10-year government bonds on February 14. This may reflect some concern from the Asian central bank about the recent rise in bond yields across the world.
EUR/USD is rising modestly on Thursday, still capped below 1.1445/50. This consolidation helped the EUR/JPY rally as the dollar remained somewhat weak.
At 13:30 GMT it will be published in the US. January inflation data and the report of weekly requests for unemployment benefits. Price data can have a broad impact on the market. The Consumer Price Index is expected to register a rise of 0.5% in January and an annual rate of 7.3%.
The EUR/JPY faces major resistance at the 132.65 area, and above the next one is at 132.90. To the downside, 132.15 has now become immediate support.
Technical levels
Source: Fx Street
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