EUR/JPY moves to 3-week highs above 123.00

• EUR/JPY pushes higher beyond the 123.00 handle.
• JPY selling keeps sustaining the up move.
• US Producer Prices next in the docket.

Persistent outflows from the Japanese safe haven are lifting EUR/JPY to new multi-month tops beyond 123.00 the figure on Tuesday.

EUR/JPY supported by risk-on mood

Easing concerns on the trade front in the wake of the recent US-Mexico agreement have been sustaining the renewed optimism in the sentiment surrounding the risk-associated space, thus fuelling the exodus from the Japanese safe haven and underpinning the rebound in US yields.

In addition, the European currency appears reluctant to test sub-1.1300 levels for the time being, despite another weak print from the Sentix index for the current month.

Later in the day, US Producer Prices for the month of May should keep the attention on the buck. Earlier in the day, the US NFIB index surprised to the upside at 105.0 during May

EUR/JPY relevant levels

At the moment the cross is gaining 0.26% at 122.98 and faces the next hurdle at 123.75 (high May 21) seconded by 123.92 (55-day SMA) and finally 124.59 (100-day SMA). On the flip side, a breakdown of 122.38 (21-day SMA) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).