EUR/JPY retakes 129.50 amid fresh Yen selling

After a brief phase of consolidation near 129.30 levels, the EUR/JPY cross regained momentum, now taking the rate back above the mid-point of 129 handle.

EUR/JPY back above 10-DMA at 129.45

The cross resumes its winning streak after a temporary reversal seen a day before, mainly driven by solid gains seen in EUR/USD on narrowing US-German 10-year yield spread, as monetary policy divergence narrows.

The latest uptick in the cross can be largely attributed to resurgent JPY selling across the board, after the European equities started on a positive note.

More so, in-line with expectations German final CPI figures also helped the bulls to regain footing, sending the cross back towards daily tops of 129.66.

With the German data out of the way, focus now remains on the US datasets and Yellen’s testimony due later in the NA session for further momentum on both the EUR and JPY.

Technical Levels

Higher side: 129.66/71 (daily top & pivot), 129.88 (5-DMA), 130.59 (Jul 12 high)

Lower side: 129.08 (5-day lows), 128.70/65 (classic S1/ Fib S2), 127.87 (20-DMA)