EUR / JPY pushes to session high of 125.72 on Ifo report
The pair has moved higher in the past hour, helped by a weaker yen as the currency slips amid higher bond yields on the session.
This has seen buyers cross the 100 hour MA (red line) earlier and with the more bullish Ifo report, they are also attempting to move back above the 200 hour MA (blue line) @ 125.64 currently.
That and the short term resistance region around 125.70-78 will be key levels to watch for now as buyers try to establish more short term control of the pair.
Failure to maintain a break above the 200 hour MA will cause a short term bias, remain more neutral, and buyers and sellers will have to fight further in the sessions to come.
The previous Ifo report is not a game-changer, but simply reaffirms the optimism surrounding the economic recovery and that things are still going well for now.
That said, it offers little information on the overall situation in the fourth and first quarters of next year, as this outlook also depends on how the health crisis develops in the coming months.
For today, however, European stocks remain firmer, with US futures also still up around 0.5%. The Ifo report won’t take away that optimism, so let’s see if the risky buyers have enough conviction to push the session further.
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. Therefore, alongside the EUR / JPY 200 hour MA, there are some key short-term levels to watch for the Euro at this time.