EUR/JPY clinches fresh 3-week highs near 126.70

• Positive risk trends push the cross higher today.
• Next target emerges at the 200-day SMA near 126.90.
• EMU Industrial Production contracted less than expected.

The buying interest in the European currency is propping up the up move in EUR/JPY to new multi-day highs in the 126.70 region.

EUR/JPY upside supported by risk appetite

The cross is up for the second session in a row at the end of the week, confirming the upbeat mood in the riskier assets and recording at the same time fresh 3-week highs beyond 126.00 the figure.

Further upside could now test 2019 highs in the mid-127.00s ahead of the relevant 200-day SMA in the 127.70 zone.

Rising yields in the US-10 year note on the back of solid risk-on trade are motivating the Japanese safe haven to retreat sharply, lending extra legs to the rally in the cross.

Adding wings to EUR, Industrial Production in Euroland contracted less than expected during February.

EUR/JPY relevant levels

At the moment the cross is gaining 0.77% at 126.58 and faces the next hurdle at 126.78 (high Mar.20) seconded by 127.50 (2019 high Mar.1) and finally 127.68 (200-day SMA). On the other hand, a breach of 125.38 (55-day SMA) would expose 123.65 (low Mar.28) and then 123.39 (low Jan.15).