EUR/JPY in new 2019 highs, approaching 126.00 on JPY-selling

• The increasing softer tone in the JPY sustains the upside.
• Next target emerges at the 55-day SMA at 126.48.
• The cross moves higher and clinches fresh yearly tops closer to 126.00.

Further JPY selling is now sustaining the march north in EUR/JPY to levels closer to the key barrier at 126.00 the figure.

EUR/JPY in 2019 tops

The cross is adding to Friday's gains, extending the upside momentum further north of the recently broken 125.00 handle and always on the back of increasing selling pressure hitting the Japanese safe haven.

In fact, the sharp rebound in yields of the US 10-year note is sustaining today's squeeze higher in USD/JPY, thus putting the Japanese currency under extra selling pressure.

Earlier in the european session, the Sentix index, which gauges the Investor Confidence in the region, dropped further in February and Producer Prices came in below initial estimates.

EUR/JPY relevant levels

At the moment the cross is advancing 0.38% at 125.93 and a breakout of 126.48 (55-day SMA) would expose 127.09 (high Dec.27 2018) and finally 128.02 (100-day SMA). On the other hand, the next support aligns at 124.89 (10-day SMA) followed by 124.67 (21-day SMA) and then 123.78 (low Jan.25).