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EUR/JPY struggles to surpass the 124.00 area, session tops

  • The cross moves higher and challenges daily highs near 124.00.
  • The better tone in the riskier assets favours the up move.
  • EMU’s Retail Sales, Sentix came in above expectations.

The continuation of the bid tone around the shared currency helped EUR/JPY to clinch fresh tops in the boundaries of 124.00 the figure, where sellers appear to be clustered.

EUR/JPY supported near 119.00

The cross is looking to add gains to the ongoing recovery from last week’s lows in the 119.00 neighbourhood following the ‘flash crash’ in the Japanese currency.

The continuation of the upbeat sentiment around the European currency and the risk-associated assets in general has been collaborating to the up move in EUR/JPY to fresh 3-day peaks near 124.00 the figure.

Expectations of a deal in the US-China 2-day trade talks starting today in Beijing have been sustaining the optimism around the riskier assets in past hours, weighing at the same on the demand for the safe haven JPY.

Today’s docket saw German Factory Orders contracting at a monthly 1.0% in November, while Retail Sales expanded more than expected 1.4% inter-month during the same period. In the broader euro area, Retail Sales (0.6% MoM) and the Sentix index (-1.5) both surpassed estimates in November and January, respectively.

EUR/JPY relevant levels

At the moment the cross is gaining 0.21% at 123.94 facing the next up barrier at 124.02 (low Jan.4) seconded by 124.83 (10-day SMA) and finally 126.43 (21-day SMA). On the other hand, a breakdown of 121.29 (low Jan.3) would aim for 118.97 (2019 low Jan.2) and then 118.24 (monthly low Feb.27 2017).

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