- EUR / JPY adds to recent gains and is above 129.00.
- Higher yields support the dollar and sink the Japanese yen.
The EUR/JPY takes an additional pace and manages well to break above the key barrier at 129.00 on Tuesday.
EUR / JPY targets the 200-day SMA
EUR / JPY advanced for the second session in a row on Tuesday and managed to regain the 129.00 zone following the resumption of buying interest in the dollar and the rebound in US yields.
In the latter, 10-year US bond yields advance beyond the key criterion level of 1.50%, while reaching new 3-day highs. The short end of the curve follows the same path and navigates multi-day highs above 0.28%.
The dollar, meanwhile, picks up the 94.00 barrier and higher when tracked by the US Dollar Index (DXY) amid weak tone in the risk space.
On the agenda, the final services PMIs for Germany and the EMU stood at 56.2 and 56.4, respectively, in September; while Producer Prices in the euro block rose less than expected in August: 1.1% month-on-month and 13.4% year-on-year.
Technical levels
So far, the cross is up 0.14% to 129.04 and a breakout of 129.45 (55-day SMA) would expose 129.72 (200-day SMA) and then 130.47 (weekly high on September 29). On the downside, the next support comes at 128.51 (October 4 monthly low) followed by 127.93 (September 23 monthly low) and finally 127.00 (round level).
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