The downside bias in around the greenback is allowing EUR/JPY to advance further and test the area just above 126.00 the figure on Friday.
EUR/JPY bid on risk-on sentiment, ECB
EUR/JPY is posting gains for the third session in a row at the end of the week, managing to keep the positive territory despite Thursday’s very volatile session in the wake of the ECB event.
In fact, the risk-on sentiment remains well in place among global investors after the ECB dialled down the recent appreciation of the single currency, while it subscribed the idea of a strong, albeit asymmetrical, recovery in the region.
In the same direction, ECB’s Vasiliauskas said earlier on Friday that the recent strong gains in the single currency are not historically exceptional, while board member Villeroy reiterated that the central bank does not target the exchange rate.
In the euro area, the Euro Group and the ECOFIN meetings are expected to keep market participants entertained throughout the day. In the US data space, inflation figures tracked by the CPI showed headline consumer prices rose 0.4% MoM and 1.3% YoY, while core consumer prices gained 0.4% inter-month and 1.3% from a year earlier.
EUR/JPY relevant levels
At the moment the cross is advancing 0.29% at 125.74 and faces the next up barrier at 127.07 (2020 high Sep.1) followed by 127.50 (2019 high Mar.1) and finally 129.25 (monthly high Dec.2018). On the other hand, a drop below 124.41 (weekly low Sep.9) would expose 124.28 (weekly low Aug.11) and finally 122.87 (monthly high Jan.16).
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