EUR/JPY firmer, bounces off lows around 130.00

• EUR/JPY regains upside bias following a test of 130.00.
• German 10-year yields trade in fresh tops around -0.18%.
• The US Chicago Fed Index bettered estimates at 0.29 in May.

The better tone in the single currency on the back of a corrective downside in the dollar helps EUR/JPY to reverse part of last week’s selloff.

EUR/JPY now focuses on 131.00

EUR/JPY so far manages to reverse three consecutive daily pullbacks and rebounds from the 130.00 neighbourhood following the bid note around the European currency while the yen is slightly bid despite the upside momentum in US yields.

In fact, the recent pick-up in volatility, as per the VIX index (aka “the panic index”), appears to still lend some wings to the safe haven universe, although the offered stance on the dollar seems to be enough to keep the cross in the upper end of the daily range.

Nothing scheduled data wise in Euroland, while ECB’s C.Lagarde is due to speak before the European Parliament later in the session.

In the US, the Chicago Fed National Activity Index improved to 0.29 (from -0.09) for the month of May. Later, a 3-month/6-month Bill Auction is due seconded by the speech by NY Fed J.Williams (permanent voter, centrist).

EUR/JPY relevant levels

So far, the cross is gaining 0.24% at 131.03 and a surpass of 132.09 (50-day SMA) would aim for 133.02 (20-day SMA) and then 134.50 (monthly high Oct.2017). On the other hand, the next support emerges at 130.04 (monthly low Jun.21) followed by 129.58 (monthly low Apr. 23) and finally 128.29 (weekly low Mar.24).