- EUR / JPY rises to daily highs around the 129.40 level.
- Higher yields reinforce the sell bias in the Japanese yen.
- The NFP jobs report will focus investors’ attention at the start of the American session.
The upward movement in US yields benefits the dollar and puts pressure on the Japanese yen, offering a further bullish movement the EUR / JPY cross during the European session on Friday. At the time of writing, the cross remains in the region of daily highs. about 129.40.
EUR / JPY now points to 130.00
The EUR / JPY cross extends the bullish momentum seen so far in the second half of the week and breaks above the 129.00 level in a rather convincing manner. amid rising selling posture around the Japanese yen.
In fact, the sale in the US bond market continues to maintain the rise in yields, with the 2-year bond leaving behind the 0.32% hurdle – last seen in March 2020 – and the benchmark 10-year bond flirting with the zone just above 1.60%.
Regarding the euro data, the German trade surplus fell to € 13 billion during the month of August, while the current account surplus also fell to 11.8 billion euros in the same period.
Across the Atlantic The US economy is expected to have added 500,000 new jobs in September and the unemployment rate is seen to drop to 5.1%.
EUR / JPY relevant levels
At the time of writing, the EUR / JPY cross is up 0.38% on the day, trading at 129.40. A break above 129.76 (200-day SMA), would expose 130.47 (September 29 high) and 130.51 (100-day SMA). On the downside, the next support is at 128.33 (October monthly low), followed by 127.93 (September 23 low) and finally 127.00 (round level).
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