- EUR / JPY reverses the initial pessimism and advances to 130.70.
- Rising US yields favor further JPY selling on Monday.
- Durable goods orders from the US expanded 0.5% month-on-month in March.
The recovery in US yields motivated JPY sellers to return to the markets and push the EUR/JPY to new multi-day highs in the region of 130.70 on Monday.
EUR / JPY targets yearly highs
EUR / JPY looks to extend Friday’s rally and maintains positive performance near the 130.70 region, at the same time paving the way for a possible test of the yearly highs so far at levels just below 131.00 (April 20). .
The recovery in US yields assists with the selling pressure on the JPY safe haven and thus maintains the bullish momentum at the cross for the time being despite the selling bias affecting the European currency.
Going forward, the Bank of Japan (BoJ) will hold its meeting on Tuesday, with a consensus among investors leaning towards the continuation of the current mega-accommodative stance, although a modification of the current purchase program has not been ruled out. bonds.
Technical levels
So far, the cross is down 0.08% to 130.37 and faces the next support at 129.44 (50-day SMA) followed by 128.29 (March 24 weekly low) and finally 127.90 (100-day SMA). On the other hand, a pass of 130.97 (high of April 20, 2021) would pave the way for a test of 131.00 (psychological level) and then 131.98 (high of July 17, 2018).
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