EUR/JPY leaps to highs near 124.40

The upside momentum around the single currency is now pushing EUR/JPY to test daily highs in the 124.40 region.

EUR/JPY boosted by JPY weakness

In addition, the offered bias seems to have returned to the Japanese safe haven, collaborating further with the daily uptick to levels closer to YTD tops in the 124.60/65 band recorded last Monday.

The cross seems to have stabilized above 124.00 the figure in recent weeks, always against the backdrop of a better tone in the risk-associated space, which in turn keeps the demand for JPY subdued.

It will be a fairly light week in the data space in both the euro area and Japan, with only EMU’s GDP figures (Tuesday) and Japanese inflation figures (Friday) only poised to spark any attention among market participants.

EUR stays supported by recent speculative positioning and background rumours on the likeliness of a shift towards a more hawkish tone by the ECB at some point in the next months.

EUR/JPY relevant levels

At the moment the cross is advancing 0.41% at 124.36 facing the immediate hurdle at 124.61 (2017 high May 8) followed by 124.67 (high May 12 2016) and then 126.50 (high Apr.28 2016). On the downside, a breach of 123.46 (low May 10) would expose 122.87 (low May 5) and finally 122.29 (23.6% Fibo of the April-May rally).