EUR/JPY regains 119.00 and above

Easing risk aversion sentiment has removed an important tailwind for the Japanese currency today, allowing a rebound in EUR/JPY beyond the 119.00 handle.

EUR/JPY bounces off multi-month lows

After testing levels last seen in early 2013 in the mid-118.00s, the cross gathered some traction and managed to post moderate gains today, propped up by the offered tone in JPY.

While risk-off trade seems to have eased a tad today, EUR will remain under pressure in light of the upcoming FOMC meeting due later in the NA session. On the Japanese side, the BoJ will hold its monetary policy meeting early tomorrow.

EUR/JPY relevant levels

At the moment the cross is advancing 0.24% at 119.21 and a breach of 118.52 (2016 low Jun.14) would expose 113.54 (monthly low Jan.2013) and then 105.93 (monthly low dec.2012). On the other hand, the next up barrier lines up at 121.91 (20-day sma) ahead of 122.74 (high Jun.7) and then 123.22 (55-day sma).