EUR/JPY looks firm, extends the upside past 131.00

• EUR/JPY adds to Tuesday’s gains and surpasses the 131.00 mark.
• The soft stance in the dollar sustains the upside in the cross.
• US headline CPI failed to surprised markets in December.

The selling bias in the greenback sustains the better mood in the risk complex and pushes EUR/JPY to new multi-day highs near 131.50 midweek.

EUR/JPY poised for further upside

EUR/JPY advances for the second session in a row on Wednesday, extending at the same time the recent breakout of the always relevant 200-day SMA, today at 130.53.

Further gains in the cross remain sustained by the improvement in the sentiment surrounding the risk-associated, always on the back of the persistent selloff in the US dollar.

In the meantime, US yields trade on a mixed note with the belly of the curve drifting lower vs. the move up in the short and long ends of the curve.

Further weakness in the buck came after US inflation figures failed to surprised markets after the headline CPI rose 7.0% YoY in December and the Core CPI gained 5.5% YoY, almost in line with investors’ expectations.

EUR/JPY relevant levels

So far, the cross is gaining 0.26% at 131.41 and a surpass of 131.60 (2022 high Jan.5) would expose 132.17 (Fibo level) and then 132.56 (high Nov.4 2021). On the downside, the next support comes at 130.53 (200-day SMA) followed by 130.15 (weekly low Jan.10) and finally 130.02 (2022 low Jan.3).