EUR/JPY moves to 3-week highs above 130.00

• EUR/JPY finally manages to surpass the 130.00 hurdle.
• The yen remains well offered on higher US yields.
• Lagarde defended once again the accommodative stance of ECB.

The firm note in US yields favours the selling bias in the Japanese safe haven and propels the greenback, all lifting EUR/JPY back to levels above the 130.00 mark, or fresh 3-week peaks.

EUR/JPY focused on yields, data

Indeed, yields of the US 10-year note pushed above the 1.50% region and lifted the US Dollar Index (DXY) to challenge YTD highs around 93.70, at the same time adding extra pressure to the risk-linked galaxy.

Around the euro, ECB’s Lagarde said at the ECB Forum in Sintra the central bank is expected to keep the accommodative monetary conditions intact to ensure a safe transition once the pandemic finishes and the return of inflation to the 2% target.

Earlier in the euro docket, the German Consumer Confidence tracked by GfK improved to 0.3 for the month of October. Across the pond, advanced trade balance figures showed the deficit is predicted to widen to $87.6B in August.

EUR/JPY relevant levels

So far, the cross is up 0.37% at 130.28 and a surpass of 130.74 (monthly high Sep.3) would aim to 130.80 (100-day SMA) and then 131.02 (Fibo level). On the downside, the next support comes at 129.65 (200-day SMA) followed by 129.39 (Fibo level) and finally 127.93 (monthly low Sep.22).