- EUR/JPY looks bid and trades closer to 131.00.
- The Japanese yen remains offered on higher US yields.
- US CB Consumer Confidence next of relevance in the docket.
The upbeat mood around US yields motivates sellers to remain in control around the Japanese yen and pushes EUR/JPY to the vicinity of the 131.00 level.
EUR/JPY advances for the third session in a row on Tuesday and looks poised to challenge the YTD highs in the area just shy of 131.00 the figure, always on the back of the selling pressure hitting the Japanese safe haven.
Indeed, US 10-year yields stage a mild rebound from recent lows, although it seems enough to sustain the offered note around the yen and therefore underpin the upside in the cross.
Also collaborating with the JPY-selling emerges the confirmation of the ultra-accommodative stance from the BoJ at its meeting earlier on Tuesday. As largely anticipated, the central bank left its monetary conditions intact and forecast inflation to remain well below its target through FY2023.
Later in the NA session, the salient data release will be the Conference Board’s Consumer Confidence gauge for the month of April.
So far, the cross is gaining 0.25% at 130.93 and a surpass of 130.97 (2021 high Apr.20) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the downside, the next support emerges at 129.50 (50-day SMA) followed by 128.29 (weekly low Mar.24) and finally 127.95 (100-day SMA).
