• Euro up versus the yen for the fifth time out of the last six trading days.
  • EUR/JPY breaks above 130.00 and rises above the 100-day SMA.

The EUR/JPY is rising sharply on Monday supported by the improvement in risk sentiment and the stability in US yields. The cross reached levels above 130.00 for the first time since mid-November.

More above 130.00?

The cross climbed to 130.09 and it remains firm above 130.00 as the rally from 127.50 (Dec 20 low) continues. The euro is now above the 100-day simple moving average and testing the 55-day SMA. A daily close clearly above 130.00 should sign more gains head. The next strong resistance stands at 130.75.

A decline back under 129.75 would alleviate the bullish pressure suggesting the euro is not ready yet for a run above 130.00.

Santa’s rally

The SP500 is up 0.90%, trading at record highs while the Nasdaq climbs 1.06%. At the same time crude oil gains 2.70%. The risk appetite across financial markets is helping the demand, favoring crosses like EUR/JPY.

Another key driver on Monday is the rally in USD/JPY. The pair is approaching 115.00. US yields remain mostly flat on Monday, weakening the yen that is also under pressure on the back of the risk sentiment.

Technical levels

This article was originally published by Fxstreet.com.Read the original article here.