EUR/JPY in 3-week highs above 118.00

The selling bias around the Japanese Yen appears far from over today, pushing EUR/JPY to levels beyond the 118.00 handle.

EUR/JPY bounces off 110.50

The cross has been posting gains since Monday, strongly rebounding more than eight cents from Friday’s lows in the mid-110.00s to current levels beyond the 118.00 barrier, all bolstered by prevailing risk-on sentiment and JPY weakness.

Data wise, Chinese results surprised markets to the upside in early trade, with GDP expanding 1.8% QoQ in Q2 and 6.7% on a yearly basis and Industrial Production rising 6.2% on a year to June, all giving extra legs to the risk rally.

Back to Euroland, EMU’s final CPI figures have matched preliminary prints in June, while May’s trade surplus shrunk to €24.6 billion from €27.5 billion.

EUR/JPY relevant levels

At the moment the cross is up 0.77% at 118.07 facing the next hurdle at 119.53 (55-day sma) followed by 122.11 (high Jun.24) and finally 124.67 (high May 12). On the flip side, a breach of 115.00 (20-day sma) would expose 110.54 (low Jul.8) and then 109.47 (post-Brexit low Jun.24).