Snapshot: EUR/JPY currently trades at 186.82, up 0.14% on the session, driven primarily by broad dollar weakness as reflected in the DXY at 98.36 (-0.31%). Risk-on sentiment, signaled by rallying US equity futures, may extend into the NY session.
- Watch 187.00 for potential resistance; break above this could accelerate gains.
- A sharp reversal in US yields would jeopardize this setup; especially given the 2Y yield is already down almost 6bps.
Bias into NY: We favor further upside for EUR/JPY, targeting 187.50, contingent on continued dollar weakness and risk appetite holding firm.