EUR/JPY clinches fresh 5-week tops beyond 122.00

• EUR/JPY pushes higher to new multi-week tops above 122.00.
• The weakness around the dollar supports the move up in the cross.
• US CPI for the month of June next of relevance in the calendar.

The selling bias in the greenback is lending extra oxygen to the single currency and is helping EUR/JPY print fresh 5-week peaks further north of 122.00 the figure on Tuesday.

EUR/JPY stronger as risk-on sentiment prevails

EUR/JPY is advancing for the second session in a row on Tuesday, extending the optimism seen at the beginning of the week and coming back after bottoming out in multi-day lows near 120.70 at the end of last week.

Looking at the broader picture, the selling bias around the greenback stays unabated despite the initial positive performance of the US Dollar Index (DXY). Indeed, market participants keep leaning towards the risk complex, which remains mainly underpinned by expectations of a solid recovery in the global economy (and ignoring at the very same time the unremitting advance of the COVID-19 pandemic).

Earlier in the session, the German ZEW survey showed the Economic Sentiment eased a bit in July, while Industrial Production in the broader euro region rebounded sharply during May.

Later in the NA session, the focus of attention is expected to be on June’s inflation figures gauged by the CPI seconded by speeches of FOMC’s Brainard and Bullard.

EUR/JPY relevant levels

At the moment the cross is advancing 0.39% at 122.18 and faces the next up barrier at 122.65 (monthly high Dec.13 2019) seconded by 122.87 (monthly high Jan.16) and finally 124.43 (2020 high Jun.5). On the other hand, a drop below 120.26 (monthly low Jul.1) would expose 119.75 (200-day SMA) and then 119.31 (monthly low Jun.22).