EUR/JPY in fresh highs around 125.00

The increasing buying pressure surrounding the single currency is lifting EUR/JPY to fresh YTD tops in the vicinity of the 125.00 handle.

EUR/JPY in multi-month peaks

The upside momentum around the cross remains well and sound, advancing in four of the last five weeks and trading in levels last seen in April 2016 just below 125.00 the figure.

A firmer risk-on sentiment and the consequent out flows from the safe haven JPY keep collaborating with the upside today, while EUR is also deriving support as market participants seem to have started to price in the likeliness of a shift in the ECB meeting as soon as at its meeting next month.

Data wise, the German ZEW Survey should confirm the up trend in sentiment in the region, while EMU’s flash GDP figures point to an expansion of 0.5% QoQ in Q1. In Japan, earlier comments by BoJ’s Kuroda passed unnoticed, while inflation figures will be the salient point later in the week.

EUR/JPY relevant levels

At the moment the cross is advancing 0.07% at 124.97 facing the immediate hurdle at 126.50 (high Apr.28 2016) followed by 128.36 (high Mar.31 2016) and finally 129.62 (50% Fibo of 149.76-109.47). On the downside, a breach of 123.25 (low May 11) would expose 121.95 (20-day sma) and finally 120.78 (100-day sma).