- EUR/JPY consolidates around 124 after hitting 13-month highs at 123.90.
- The euro completes a 10-day rally with the. Yen crushed by risk appetite.
- Resistance at 124.51 is the key level to watch now – Commerzbank.
The euro rose higher against the yen on Friday, with the yen vulnerable amid a risk-on mood that has boosted the pair to fresh one-year highs at 124.45. The euro is set to complete a 10-day winning streak, boosted by the ECB’s COVID-19 stimulus package and market hopes of a quick post-pandemic recovery.
The yen, crushed by the positive market sentiment
The safe-haven Japanese yen has been one of the worst performers this week, plunging 3.5% against the euro, nearly 2% against the US dollar and more than 5% against the British pound.
Macroeconomic figures are starting to show the first signs of economic recovery, a sentiment confirmed by the unexpected increase on the US Non-Farm Payrolls report on Friday, that has boosted hopes of an economic recovery in the second half of the year. This context has driven investors away from safe havens like the yen, aiming for riskier asses.
Furthermore, the European Central Bank’s decision to step up its coronavirus rescue fund and Germany’s 130 billion stimulus package, both announced this week, have eased concerns about another debt crisis in peripheral countries, increasing hopes of progress towards a fiscal union, that has strengthened the euro.
EUR/JPY: Next resistance now is 124.51 – Commerzbank
The pair has eroded the long-term downtrend, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, and is targeting 124.51, “This has been such a directional move the market is already approaching the 200-week ma at 124.51. This guards the 128.42 2014-2020 resistance line.”
EUR/JPY key levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.