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EUR / JPY jumps to the 124.00 area before it rises in the bags

  • Risk appetite propels EUR / JPY to six-day highs.
  • The cross is testing 124.00 and has the steepest rally in nearly two weeks.

The EUR / JPY extended the bullish run to the 124.00 zone, reaching the highest level since Tuesday. The price is rising supported by the advance of the EUR / USD and the appetite for risk.

The expectation for the advancement of a vaccine for the coronavirus, along with economic data from China and the possibility of an agreement for new fiscal stimuli in the US, to which the corporate results of European companies are added are driving the good mood of the markets on Monday. This serves to leave behind for a moment the fears for the Brexi already a second wave of infections in Europe.

The market is waiting for several relevant speeches from central bank officials including Christine Lagarde, President of the European Central Bank and Jerome Powell, the chairman of the Federal Reserve.

Technical overview

The EUR / JPY is rebounding from week lows and trading at 123.97, the highest level in six days, with the bullish tone intact. It has returned above the 20-day moving average at 123.75. Next resistance can be seen at 124.25 and then 124.45. A daily close clearly below the 100-day moving average at 123.45 would weaken the euro, favoring an extension of the decline.

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Credits: Forex Street

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