EUR/JPY looks firmer and regains 130.00 ahead of FOMC

• EUR/JPY reclaims the upbeat mood and the 130.00 mark.
• EMU’s final February CPI rose 0.2% MoM and 0.9% YoY.
• The FOMC event is due later in the NA session.

Further selling pressure in the Japanese safe haven lifts EUR/JPY back to the area above the key 130.00 the figure on Wednesday.

EUR/JPY focused on the Fed

After two consecutive daily pullbacks, EUR/JPY now regains the smile and manages well to retake the 130.00 yardstick and a tad above.

In fact, and as usual in past sessions, higher US yields sustain the offered note around the Japanese yen and bolster another bullish attempt in the cross, which remains on track to re-visit the 2021 highs in the 130.50 region at some point in the near future.

Looking at the global markets, it prevails a consolidative mood ahead of the key FOMC meeting due later in the NA session, with Powell expected to unveil an upbeat revision for the US economy while keeping unchanged the monetary policy statu quo and the mega-accommodative stance from the Federal Reserve.

Closer to home, earlier figures for EMU’s CPI showed headline consumer prices rose 0.2% MoM and 0.9% YoY. Core prices rose at a monthly 0.1% and 1.1% from a year earlier.

EUR/JPY relevant levels

At the moment the cross is gaining 0.23% at 130.01 and faces the next hurdle at 130.48 (2021 high Mar.15) followed by 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the other hand, a drop below 128.99 (20-day SMA) would expose 128.18 (monthly high Mar.2) and finally 127.30 (low Feb.17).