EUR/JPY moves to 2-week highs near 125.50

• The cross extends the upside momentum to the mid-125.00s.
• German Industrial Production expanded more than expected in February.
• US Non-farm Payrolls coming up next in the docket.

EUR/JPY is gradually inching higher this week, prolonging the up move to the area of fresh 2-week highs in the mid-125.00s.

EUR/JPY looks to risk trends, data

The cross is advancing further at the end of the week, extending the rebound from March lows in the 123.60 region.

The renewed optimism around the risk-associated space has been sustaining the recovery in the cross, particularly on the back of auspicious headline from the US-China trade talks and the selling bias in the greenback.

Today’s calendar in the euro area saw German Industrial Production expanding at a monthly 0.7% in February, surpassing initial estimates and reversing January’s 0.8% contraction.

Later in the day, US Non-farm Payrolls are expected to grab all the attention. Market consensus sees the US economy to have added 180K jobs and the unemployment rate to stay put at 3.8%.

EUR/JPY relevant levels

At the moment the cross is gaining 0.12% at 125.42 and faces the next hurdle at 126.02 (100-day SMA) seconded by 126.78 (high Mar.20) and finally 127.50 (2019 high Mar.1). On the other hand, a breach of 124.72 (10-day SMA) would expose 123.65 (low Mar.28) and then 123.39 (low Jan.15).