EUR/JPY flirting with 2-month tops near 122.50

The rally in EUR/JPY remains well and sound so far this week, now clinching the area of 2-month tops in the mid-122.00s.

EUR/JPY upside falters near 122.50

The selling mood around the Japanese safe haven keeps bolstering the three-week rally in the cross, which has recently broken above the critical 122.00 handle for the first time since early March.

In the data space, EMU’s advanced GDP figures matched estimates for the first quarter while Producer Prices have come in short of estimates during March.

Markets in Japan will remain closed Thursday and Friday, while the focus of attention should stay on the US docket, where today’s FOMC minutes and Friday’s Non-farm Payrolls will take centre stage.

EUR/JPY relevant levels

At the moment the cross is up 0.01% at 122.43 facing the immediate hurdle at 122.62 (high May 2) followed by 122.89 (high Mar.13) and finally 123.39 (high Jan.27). On the flip side, a breach of 121.69 (low May 2) would expose 121.21 (low May 1) and finally 120.77 (23.6% Fibo of the April-May rally).