EUR/JPY extends the up move, approaches 123.00

• EUR/JPY moves higher and trades closer to the 123.00 handle.
• Better mood in the risk trends support the upside in the cross.
• JPY selling follows the pick up in US yields.

The now offered tone around the Japanese safe haven is helping EUR/JPY to advance to new 3-week highs near 12300 the figure.

EUR/JPY looks to risk trends

The cross is looking to add gains to the ongoing rally, approaching the critical resistance at 123.00 the figure amidst the continuation of the selling bias in the Japanese currency.

The better mood in the risk-associated universe is lifting yields of the key US 10-year note to fresh tops near the 2.15% handle, helping the selling mood in JPY and sustaining the improved sentiment in the riskier assets.

In the data space, GDP figures in Japan surprised to the upside earlier in the day, showing the economy expanded 0.6% inter-quarter in the January-March period and 2.2% on an annualized basis. In addition, the Chinese trade surplus came in on the strong side in May, widening to $41.65 and lending extra wings to the risk-on mood.

EUR/JPY relevant levels

At the moment the cross is gaining 0.18% at 122.79 and faces the next hurdle at 123.75 (high May 21) seconded by 123.95 (55-day SMA) and finally 124.60 (100-day SMA). On the flip side, a breakdown of 121.94 (10-day SMA) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).