EUR/JPY retreats from highs, back below 120.00

The prevailing risk-on sentiment keeps the demand for the safe haven JPY subdued, while helping EUR/JPY to keep its weekly gains for the time being.

EUR/JPY upside stalled near 121.00

The cross has started the week on a strong footing after the results from the French elections have boosted the demand for riskier assets, prompting market participants to quickly dump JPY positions.

EUR/JPY has quickly regained the 120.00 handle and above in the wake of Sunday’s event, although the upside momentum has fizzle out somewhat with the hours, leaving the cross to gravitate around the 120.00 neighbourhood so far today.

Data wise, the German IFO indicator gave some extra oxygen to the single currency on Monday, although all the attention should stay on the ECB meeting on Thursday and the BoJ interest rate decision and inflation figures, due on Thursday and Friday respectively.

EUR/JPY relevant levels

At the moment the cross is up 0.62% at 120.02 facing the immediate hurdle at 120.66 (100-day sma) followed by 120.86 (high Apr.24) and finally 122.89 (high Mar.13). On the flip side, a breach of 119.12 (low Apr.25) would expose 118.87 (low Apr.24) and finally 117.93 (200-day sma).