The better note in the risk-associated universe sustains the buying interest in the European currency and pushes EUR/JPY to the mid-130.00s so far on Friday. The consolidation mood prevails in EUR/JPY since the beginning of the month, always above the 130.00 mark and amidst alternating risk appetite trends and diminishing yields in the US bond market.
In fact, the selling bias in the greenback echoes the renewed downtrend in yields of the US 10-year note and lends wings to the euro, all propping up the so far daily gains in the cross. At the moment the cross is gaining 0.22% at 130.38 and a move past 130.68 (2021 high Apr.7) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the downside, the next support lines up at 129.57 (low Apr.8) followed by 129.07 (50-day SMA) and finally 128.29 (weekly low Mar.24).