- The euro maintains daily gains against the US dollar and the yen.
- EUR / JPY makes a strong rebound and climbs back above the 20-day moving average.
The EUR/JPY extended the gain during the US session and hit a fresh six-day high at 124.33. It is consolidating earnings, having the best performance in almost a month.
EUR / USD rally and USD / JPY stabilization are propelling EUR / JPY on Monday. Over the past few hours, stock prices turned negative, but the cross held the gains. The fading of risk appetite didn’t help the yen so far. In reality, USD / JPY is climbing towards daily highs.
The US dollar remains weak across the board and EUR / USD is trading at fresh daily highs near 1.1800. The pair is up nearly 100 pips from the Asian session lows, supporting the EUR / JPY gain.
The Brexit headlines did not affect the markets. Michel Barnier, the EU’s head of negotiations, confirmed that the bloc remains available for talks in London this week. Comments from the president of the European Central Bank, Lagarde, were also ignored by market participants. He mentioned that the central bank will continue to implement an accommodative monetary policy stance in response to the pandemic.
Levels to watch
EUR / JPY rebounded from the 100-day moving average that offers support at 123.45. A daily close below that line would suggest more weakness going forward. Short-term momentum is starting to favor the upside, with price back above the 20-day moving average (123.80) and turning north. The next strong resistance is seen at 124.50
Credits: Forex Street
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