EUR/JPY looks to be set on the 200-D SMA, watching trade wars/stocks

• EUR/JPY rose USD/JP's impressive break of 107.20, where next?
• The Eurozone economic activity remains robust in March, traders keep eye on trade-war noise and nonfarn payrolls.

EUR/JPY is tracking the stocks on Wall Street again today, where markets are jittery whilst trying to remain positive in the unpredictability of current political affairs. Currently, EUR/JPY is trading at 131.30, up 0.15% on the day, having posted a daily high at 131.52 and low at 131.06.

The yen has seen some good two way business of late, caught up in ebbs of risk-on/off flows as traders try to keep up with the trade war developments, clinging to bouts of optimism on bilateral agreements. Stocks have been the most cautious while the FX space has only observed so far.

The Eurozone economic activity remains robust in March

Paring back the Yen's advance in March, equities are helping the bull reversal in the cross. The benchmarks have had a good start in April, with the S&P maintaining form above the descending 10-D SMA while the DJIA has broken a key resistance level in its third day of gains as trade war angst dwindles as we lead into this week's showdown data event, the non-farm payrolls. However, in the near term, the cross is meeting offers in the 131.40/50 region again while the S&P and DJIA both drop back below the 21-hr SMA. USD/JPY is well bid and finally through the key 107.20 resistance, with conviction as markets get set for the US jobs data on Friday. 

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EUR/JPY levels

The key upside target on the wide comes as the 200-D SMA at 132.10. the technicals are behind such a bias with the 10 and 21-D SMAs both turning higher along with bullish RSI and momentum behind the move. On the downside, "the recent low at 128.96 was accompanied by a large divergence of the daily RSI and we suspect that we have based there," analysts at Commerzbank argued, adding, "Resistance above the 200 day ma comes in at the 132.43/47 current March high and Fibonacci retracement. If bettered, the January low and February 21 highs at 133.05/09 would be on the cards together with the 134.25/61.8% retracement."