- Euro rallies against the yen after Friday’s slide.
- EUR / JPY remains near highs in years.
The EUR / JPY reached 132.15 during the European session and then moderated the rise falling just below 132.00, before a downward correction of the USD / JPY. The cross is rising on Monday, erasing much of Friday’s losses and holding near the highs in years it reached last week at 132.36.
The rise of the cross occurs due to a combination of the weakness of the yen, product of the modest advance in the yields of Treasury bonds and the rise in the equity markets. The volume in the capital markets remains low not only because it is Monday, but because of the UK holiday.
In the Eurozone, the Markit PMI report, which showed a downward revision in April figures and the better-than-expected data on German retail sales, had no impact on the euro. Later it will be the turn of the US Manufacturing ISM, where Federal Reserve officials including President Powell will also speak.
The chart continues to show EUR / JPY clearly bullish, although in four hours, the moment is diminishing. At 131.75 is the average of 20 on the four-hour chart, which is flattening out. A fall below would leave the euro weak. At 131.35 (April 30 low) there is important support, while on the upside, a confirmation over 132.10, would give the euro a boost.
Technical levels
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