EUR/JPY pushes to a session high of 125.72 on the Ifo report
The pair has been nudging higher over the past hour, helped by a weaker yen as well with the currency slipping amid higher bond yields on the session.
That has seen buyers break above the 100-hour MA (red line) earlier and with the more upbeat Ifo report, they are attempting a move back above the 200-hour MA (blue line) @ 125.64 as well currently.
That and the near-term resistance region around 125.70-78 will be key levels to watch for now as buyers try to establish more near-term control in the pair.
Failure to hold a break above the 200-hour MA will see the near-term bias keep more neutral and both buyers and sellers will have to battle it out further in the sessions ahead.
The Ifo report earlier is no game changer but it just reaffirms the optimism surrounding the economic recovery and that things are still going smoothly for now.
That said, it offers little about the overall picture in Q4 and Q1 next year, considering that such outlook is also dependent on how the health crisis develops in the coming months.
For today though, European equities are keeping firmer with US futures also still seen up by ~0.5%. The Ifo report won’t be taking away that optimism so let’s see whether or not risk buyers have enough conviction to push further on the session.
EUR/USD also hit a session high of 1.1835 earlier, but gains are also limited by its own 100-hour moving average @ 1.1835. Hence, that alongside the 200-hour MA in EUR/JPY are key near-term levels to watch for the euro at the moment.