EUR/JPY clinches highs near 123.70

The increasing offered tone around the Japanese currency is helping EUR/JPY to advance to the area of 123.70, fresh daily tops.

EUR/JPY up on JPY weakness

Renewed talks of a delay in the implementation of the sales tax hike by the Japanese government has allowed fresh selling pressure on the safe have JPY, boosting the cross to multi-day peaks closer to the 124.00 handle, and offsetting at the same time the recent decline in the European currency.

In the data space, Japanese Retail Sales have contracted less than estimated 0.8% on a year to April, while German flash CPI figures are expected later during the European afternoon.

EUR/JPY relevant levels

At the moment the cross is up 0.84% at 123.68 and a surpass of 124.29 (55-day sma) would expose 125.57 (100-day sma) and then 126.50 (high Apr.28). On the other hand, the immediate support aligns at 121.45 (2016 low May 6) ahead of 118.74 (2013 low Feb.25).