EUR/JPY regains the 122.00 handle, multi-day peaks
- EUR/JPY retakes the 122.00 barrier and beyond.
- EMU Producer Prices surprised to the downside.
- US ADP report and ISM Non-manufacturing coming up next.
The continuation of the rally in the European currency is now sustaining the move higher in EUR/JPY above 122.00 the figure, clinching at the same time fresh multi-day highs.
EUR/JPY looks to data, risk trends
The cross is extending the upbeat mood for the third session in a row so far today, as the sentiment surrounding the single currency remains firm on the back of persistent USD-weakness.
Trade concerns, but mainly the prospects of rate cuts by the Federal Reserve continue to weigh on the price action surrounding the buck, rendering in extra oxygen to the risk-associated space. It is worth mentioning that the cross has already gained around 1.3% since Monday’s multi-month lows in the 120.80 region to today’s peaks near 122.30.
In the docket, Producer Prices in Euroland came in below expectations during May, while final services PMIs surprised to the upside. Later in the day, the US ADP report should rule the sentiment around the buck ahead of the release of the ISM Non-manufacturing and the Fed’s Beige Book.
EUR/JPY relevant levels
At the moment the cross is advancing 0.30% at 122.04 and faces the next hurdle at 122.49 (21-day SMA) followed by 123.75 (high May 21) and finally 124.09 (55-day SMA). On the other hand, a breach of 120.78 (low Jun.3) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’).