EUR/JPY challenges daily highs around 121.60

• EUR/JPY moves higher to the 121.60 region today.
• Positive flash PMIs give extra momentum in EUR.
• US advanced PMI, housing sector data, Fedspeak next on tap.

The shared currency is prolonging its upbeat momentum so far this week and is now lifting EUR/JPY to the area of session peaks in the 121.60 zone.

EUR/JPY looks to data, risk appetite

While the greenback keeps struggling for direction following the FOMC-led sharp correction lower, the optimism around the single currency remains firm and today’s supported further by auspicious results from preliminary PMIs in core Euroland.

Adding to the upside in the cross, the initial strength in the Japanese safe haven has subsided somewhat in past hours amidst a better mood in yields of the US 10-year reference.

The up move in the cross, in the meantime, remains underpinned by easing trade concerns ahead of the potential Trump-Xi meeting at the G-20 event in Japan next week.

EUR/JPY relevant levels

At the moment the cross is gaining 0.36% at 121.59 and faces the next hurdle at 121.94 (21-day SMA) followed by 123.17 (high Jun.11) and then 123.75 (high May 21). On the other hand, a breakdown of 120.95 (low Jun.21) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).