- EUR / JPY finally manages to overcome the 130.00 hurdle.
- The yen continues to be well offered thanks to higher yields in the United States.
- Lagarde once again defended the ECB’s accommodative stance.
The firm tone in US yields favors the selling bias in the Japanese safe haven and boosts the dollar, all of which raises the EUR/JPY at levels above 130.00, or new 3-week highs.
EUR / JPY focused on returns, data
In fact, US 10-year yields topped the 1.50% zone and lifted the US Dollar Index (DXY) to challenge yearly highs around 93.70, while adding additional pressure to the risk-linked space.
On the euro, the ECB’s Lagarde said at the ECB Forum in Sintra that the central bank is expected to keep accommodative monetary conditions intact to ensure a safe transition once the pandemic ends and inflation returns to the 2 target. %.
Earlier on the euro agenda, German consumer confidence followed by GfK improved to 0.3 for the month of October. On the other hand, advanced trade balance figures showed that the deficit is expected to widen to $ 87.6 billion in August.
Technical levels
So far, the cross is up 0.37% to 130.28 and a breakout of 130.74 (September 3 monthly high) would point to 130.80 (100-day SMA) and then 131.02 (Fibonacci level). On the downside, the next support comes at 129.65 (200-day SMA) followed by 129.39 (Fibonacci level) and finally 127.93 (September 22 monthly low).
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