EUR/JPY stays bid above 122.00, new yearly highs

• EUR/JPY eases from 2020 highs around 122.30.
• Risk-on trade keeps supporting JPY-selling.
• US-China’s “Phase One’ deal stays in centre stage.

The persistent selling bias in the Japanese currency continues to bolster the upside in EUR/JPY to fresh 2020 peaks in the 122.30/35 band on Monday.

EUR/JPY looks to trade

The cross is advancing for the fourth consecutive session at the beginning of the week, almost exclusively on the back of rising optimism in the risk-universe.

Indeed, easing geopolitical tensions in the US-Iran scenario and the increasing optimism ahead of the sign of the so-called ‘Phase One’ deal between the US and China have been sustaining the better mood among investors, sponsoring at the same time the exodus from the safe havens.

In the docket, the most salient event later in the week include the US inflation figures tracked by the CPI (Tuesday), German GDP results (Wednesday). US Retail Sales and ECB’s accounts (Thursday) and Chinese Q4 GDP prints (Friday).

EUR/JPY relevant levels

At the moment the cross is advancing 0.36% at 122.19 and faces the next hurdle at 122.31 (2020 high Jan.13) seconded by 122.65 (monthly high Dec.13) and then 123.35 (monthly high Jul.1 2019). On the downside, a breach of 120.99 (200-day SMA) would aim for 120.86 (55-day SMA) and finally 120.16 (2020 low Jan.3).