- Yen weakness propels EUR / JPY to new highs for the current rally.
- Quote is approaching 1290.00, accumulates three weeks with profit.
The EUR / JPY broke above 128.30 at the start of the European session and climbed to 128.73, reaching the highest level since December 2018. The price then experienced a decline that found support at 128.50.
The crossing remains in the zone of the maximums, validating new relevant technical breaks. The bullish tone intensified last week after the EUR / JPY broke the long-term resistance around 127.00 / 50. A return below would ease the upward pressure.
In the short term, the bullish tone remains intact. The main driver is being the weakness of the yen before the rise of the equity markets and the rise in the yields of Treasury bonds. Both factors weaken the yen.
The euro also gives it some momentum with the recovery of the EUR / GBP and the continuation of the rally of the EUR / CHF. Against the pound, the euro collapsed in the Asian session and the rebound has also served the EUR / JPY.
When it comes to data, an upward revision of Germany’s GDP was known in the fourth quarter from + 0.1% to + 0.3%. Shortly, the Governor of the Bank of England, Andrew Bailey, will appear before the committee of the Treasury. What happens on Wall Street and in the Treasury bond market may be relevant for the crossover for the next few hours.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
