EUR/JPY met resistance above 122.00, 10-day/21-day SMAs

• EUR/JPY keeps the bid tone unchanged above the 122.00 handle.
• Higher US yields give legs to JPY-selling, supporting the up move.
• Fed’s Powell, FOMC minutes next of relevance on Wednesday.

EUR/JPY has managed to regain extra steam in the first half of the week, briefly retaking the key 122.00 mark where it found strong hurdle for the time being.

EUR/JPY looks to US events, yields

Yields of the key US 10-year note have rebounded to the area above the 2.06% level during early trade, in turn sustaining the selling bias around the Japanese safe haven and motivating the cross to extend the multi-session up move.

The shared currency, in the meantime, remains under pressure and has tempered somewhat the bullish move in the cross beyond 122.00 the figure, all in response to rising speculations of ECB easing in combination with USD-strength.

Nothing worth mentioning in the euro calendar, while speeches by FOMC’s Bullard and Bostic are due across the pond. Moving forward, cautiousness among traders is seen picking up pace in light of Powell’s testimony and the FOMC minutes, all due tomorrow.

EUR/JPY relevant levels

At the moment the cross is gaining 0.07% at 122.01 and faces the next hurdle at 122.65 (55-day SMA) followed by 123.35 (high Jul.1) and finally 123.75 (high May 21). On the other hand, a breakdown of 121.31 (low Jul.3) would expose 120.95 (low Jun.21) and then 120.78 (low Jun.3).