EUR/JPY bulls have eyes for 134.32, the 61.8% fibo

Currently, EUR/JPY is trading at 133.20, up 0.61% on the day, having posted a daily high at 133.46 and low at 132.40.

Despite a bearish picture unfolding for the euro after last week's bearish close vs the greenback, EUR/JPY has been taking advantage of the rally in US stocks and the abating risk-off sentiment in global markets as the N.Korean threat falls back to 'amber', for the time being, while no new news over the weekend was centred around such geopolitical tensions.

EUR/JPY rallied from 130.61 to aforementioned highs in line with USD/JPY flows from 109.55 recent low to 111.66 key resistance area as investors look for yield from riskier plays, pulling out of safe havens such as gold. Additionally, the euro was boosted overnight by not only EZ CPI that finalised at 1.5% y/y and with 1.3% core y/y beating 1.2% expected but also ECB's Hansson. He argued that the Central Bank's next move should be a recalibration of stimulus without caution in moving towards such a policy. 

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EUR/JPY levels

EUR/JPY's acceleration to the upside has managed to clear through the resistance around 133 the figure and could be on the verge to clear a runway towards the 134.32 level and the 61.8% of the move down from 2014. First resistance is 133.20, ahead of 133.80 and 134.20. To the downside, 130.60 is a key area of support on the wide after clearing stops below 133 the figure and 132.24/45 (August 2015 low and January 2016 high).