- EUR / JPY finds daily resistance at the 128.20 / 25 zone.
- The weak tone of the dollar supports the upside at the cross.
- The German business climate surprised to the upside this month.
The ongoing sell bias hitting the dollar gives more support to riskier assets and raises the EUR/JPY above 128.00 on Monday.
EUR / JPY again targets 128.50
The EUR / JPY reverses the fall on Friday and recovers the level 128.00 and above, at the beginning of the week, always in the midst of the persistent buying bias that surrounds the space associated with risk,
Indeed, regular reflation trading continues to underpin upward momentum in the pari passu crossed by the increasing pace of vaccine launches around the world and the strong prospects for a strong global recovery by the end of the year.
On the euro agenda, the positive results of the German business climate tracked by the IFO survey in February (92.4) further contribute to the rise in the cross, which continues to be tempered by renewed buying interest in the Japanese safe haven (after the drop in US yields).
Looking at US data, the Chicago Fed National Activity Index improved to 0.66 (from 0.41) for the month of January. Later in the session, C. Lagarde from the ECB will speak on “Stability, economic coordination and governance in the EU”.
Technical levels
Right now, the cross is gaining 0.30% at 128.10 and is facing next resistance at 128.45 (February 17, 2021 high) followed by 129.25 (December 13, 2018 monthly high) and then 130.14 (December 7, monthly high). November 2018). On the other hand, a drop below 127.30 (weekly high of February 17) would point to 126.10 (monthly low of February 4) and finally 125.08 (low of January 18).
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