EUR/JPY regains 130.00 and above, 2-day tops

• The better tone in EUR pushes the cross to fresh tops.
• The cross clinches 2-day highs beyond the 130.00 handle.
• Some offered bias in the greenback gives extra wings to EUR.

The now better tone around the single currency is pushing EUR/JPY back above the 130.00 handle, recording at the same time fresh 2-day highs.

EUR/JPY up on renewed sentiment

The greenback is now accelerating its correction lower, dragging the US Dollar Index to challenge the critical support at 93.00 the figure and at the same time allowing the riskier assets to rebound from recent lows.

In fact, the European currency now picks up extra steam and helps the cross to not only regain the psychological 130.00 milestone, but also to record fresh 2-day peaks in the 130.40 region.

On the JPY side, the safe haven currency remains on the defensive and is collaborating further with the renewed upside momentum in the cross.

In the meantime, the cross is reverting ten consecutive sessions with losses, shedding more than 3% since April’s tops in the mid-133.00s.

EUR/JPY relevant levels

At the moment the cross is up 0.73% at 130.42 and a breakout of 131.10 (10-day sma) would expose 131.87 (21-day sma) and finally 132.39 (200-day sma). On the downside, the next support aligns at 129.22 (low May 8) followed by 128.94 (2018 low Mar.23) and then 127.56 (low Aug.18 2017).