- EUR / JPY rises to the 133.20 area, clears losses from Friday.
- EUR / USD bounce and USD / JPY rally propel the cross.
The EUR / JPY is starting the week with a strong rebound from three-week lows at the 132.65 zone and just hit daily highs just above 133.00. The combination of the weak yen and the stability of the euro drove the cross.
The advance came despite Wall Street stocks losing strength in the last hour. The USD / JPY rally was correlated with a rebound in US Treasury yields, with the 10-year rate reaching 1.48%.
At the same time, EUR / USD is correcting higher, which is giving EUR / JPY extra support. Yet the ongoing rebound in both currency pairs is unclear on sustainability and negative signs are still to be seen. In the case of the EUR / JPY if it confirms above 133.50, it would leave behind the negative bias of a very short place, by returning above the 20-day moving average, breaking a short-term bearish line and horizontal resistance.
The markets have their eyes on the Federal Reserve that tomorrow the two-day meeting will begin. There will be important US data (retail sales and wholesale inflation) on Tuesday, so volatility could continue at high levels.
Technical levels
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