EUR/JPY now looks firmer and flirts with highs near 131.80

• EUR/JPY returns to the upper end of the range near 131.70.
• JPY selling continues to fuel the upside amidst higher US yields.
• Chief Powell will testify later in the NA session.

The selling pressure around the Japanese currency picks up pace and pushes EUR/JPY to the area of daily highs around 131.70.

EUR/JPY now targets the 132.00 yardstick

EUR/JPY now advances for the second session in a row and puts further distance from Monday’s 2-month lows in the 130.00 neighbourhood.

The mild positive note in US 10-year yields collaborates with the selling pressure in the Japanese safe haven despite global markets remain biased towards the risk-off mood on turnaround Tuesday.

The European currency once again comes under downside pressure in response to the resurgence of the buying interest around the greenback, leaving behind the auspicious start of the week.

Extra selling pressure in the euro could also stem from comments by Chairwoman Lagarde on Monday, when she deemed as premature any talk about modifying the central bank’s policy, adding that tighter monetary conditions could impact on the economic recovery.

Later in the session, all the looks will be upon the testimony by Chief J.Powell before the Select Subcommittee on Coronavirus Crises on “The Federal Reserve’s Response to the Coronavirus Pandemic”.

EUR/JPY relevant levels

So far, the cross is gaining 0.34% at 131.79 and a surpass of 132.13 (50-day SMA) would aim for 132.97 (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).