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EUR/JPY recedes from tops beyond the 118.00 mark

  • EUR/JPY advances to tops near 118.30 and recedes afterwards.
  • Broad-based risk-on sentiment sustains the move up in the cross.
  • US Consumer Confidence in centre stage later in the NA session.

The generalized improved mood in the risk complex is bolstering the upside in EUR/JPY on Tuesday.

EUR/JPY stronger on risk appetite

EUR/JPY is advancing for the second session in a row on Tuesday, extending the bounce off recent lows in the 117.00 neighbourhood and always supported by the better tone in the riskier assets.

The greenback is quickly losing ground amidst month-end flows adjustments and despite US-China trade concerns remain well unabated and the global outlook continues to point to the downside.

Later in the session, markets’ attention will be on the release of the US Consumer Confidence, housing data and regional manufacturing gauges. Earlier in the day, the German Consumer Climate rebounded from lows and came in at -18.9 for the month of June.

EUR/JPY relevant levels

At the moment the cross is gaining 0.48% at 117.87 and faces the next hurdle at 118.52 (monthly high May 21) followed by 119.03 (monthly high Apr.7) and finally 119.23 (200-day SMA). On the flip side, a drop below 116.99 (low May 22) would expose 115.44 (monthly low Apr.29) and then 114.39 (2020 low May 7).

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