Further buying interest around the European currency lifted EUR/JPY to new YTD highs in the mid-132.00s earlier in the session. EUR/JPY advances for the third session in a row at the beginning of the week, returning to levels last seen in September 2018 around 132.50. The selling mood around the greenback remains well in place and lends extra legs to the upside momentum in the shared currency. The Japanese yen, however, stays bid on the back of a mild retracement in US yields as market participants continue to digest Friday’s ugly figures from April’s Nonfarm Payrolls.

In the euro docket, the Investor Confidence gauged by the Sentix Index improved to 21.0 for the month of May, extending the uptrend for the third month in a row. Later in the week, Fed-speakers are expected to reinforce the mega-accommodative stance from the Fed, which was once again reiterated at the latest FOMC event (April 28), and therefore the greenback is forecast to remain under pressure. In the calendar, US CPI and Retail Sales will take center stage. So far, the cross is gaining 0.18% at 132.26 and a surpass of 132.52 (2021 high May 10) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21, 2018). On the flip side, immediate contention is located at 130.98 (weekly/monthly low May 5) seconded by 130.13 (50-day SMA), and finally 129.58 (weekly low Apr.23).