EUR/JPY looks firmer near the 128.00 region


  • EUR/JPY clinched fresh yearly tops around 128.00.
  • The selling bias in the greenback lends support to the cross.
  • EMU’s Industrial Production contracted 1.6% MoM in December.

The softer note in the greenback is fuelling the upbeat mood in the risk complex and pushes EUR/JPY to new YTD highs in the 128.00 neighbourhood.

EUR/JPY in more than 2-year highs

EUR/JPY extends the upside for yet another session at the beginning of the week and reaches levels last seen in December 2018 around 128.00.

The improved sentiment in the risk-associated universe favours the continuation of the march north in the cross. In fact, higher US yields have been sustaining the selling pressure in the Japanese currency, while the downtrend in the dollar lifts the euro and its peers, all against the backdrop of the reflation/vaccine rollout trade.

In the euro docket, Industrial Production in the broader Euroland contracted at a monthly 1.6% during December, sharply reversing the previous 2.6% expansion. Still in the euro area, the trade surplus widened to €29.2 billion, also in December.

Data wise in Japan, preliminary GDP figures showed the economy is expected to expand 3.0% QoQ during the October-December 2020 period and 12.7% on an annualized basis.

EUR/JPY relevant levels

At the moment the cross is gaining 0.54% at 127.77 and faces the next up barrier at 127.97 (2021 high Feb.15) followed by 130.18 (monthly high Nov.7 2018) and then 133.13 (monthly high Sep.21 2018). On the other hand, a drop below 126.10 (monthly low Feb.4) would aim for 125.59 (low Jan.27) and finally 125.08 (2021 low Jan.18).

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD could extend the recovery to 0.6500 and above

AUD/USD could extend the recovery to 0.6500 and above

The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.

AUD/USD News

EUR/USD now refocuses on the 200-day SMA

EUR/USD now refocuses on the 200-day SMA

EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.

EUR/USD News

Gold struggles around $2,325 despite broad US Dollar’s weakness

Gold struggles around $2,325 despite broad US Dollar’s weakness

Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.

Gold News

Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure

Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure

Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.

Read more

US versus the Eurozone: Inflation divergence causes monetary desynchronization

US versus the Eurozone: Inflation divergence causes monetary desynchronization

Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures