EUR/JPY retakes 114.00 and beyond

The Japanese currency continues its march south during the first half of the week, now lifting EUR/JPY to daily highs above the 114.00 mark.

EUR/JPY attention to Abe

The cross is advancing for the second session in a row today, up more than three cents since Monday’s lows and against the backdrop of increasing JPY weakness on prospects of further stimulus in the Japanese economy.

Following Abe’s victory over the weekend, market participants expect the PM to announce a package of stimulus measures in order to lift the economy.

Adding to the upside, risk-on sentiment remains firm at the beginning of the week, sustaining the upbeat momentum in EUR.

EUR/JPY relevant levels

At the moment the cross is up 0.54% at 114.28 facing the next hurdle at 114.64 (20-day sma) followed by 114.86 (high Jul.1) and finally 119.58 (55-day sma). On the flip side, a breach of 110.54 (low Jul.8) would aim for 109.47 (post-Brexit low Jun.24) and then 105.93 (monthly low December 2012).