EUR/JPY met contention near the 200-day SMA around 120.60

• EUR/JPY is up smalls just below the 121.00 mark.
• Risk-on trade keeps dictating the sentiment.
• Markets’ attention remains on coronavirus and US-China trade.

The better tone in the risk-associated universe is lending fresh oxygen to EUR/JPY, which navigates the vicinity of the 121.00 area in the wake of the opening bell in Wall St.

EUR/JPY looks to trade, China

The cross is so far recovering ground lost on Wednesday, regaining some poise after finding contention in the boundaries of the 200-day SMA around 120.60.

The improved mood surrounding the risk complex found extra footing after concerns around the Wuhan coronavirus kept dissipating in past hours.

In addition, China announced it will halve tariffs on US imports as part of the ‘Phase 1’ deal, bolstering further the global appetite for riskier assets and the ‘hunt for yield’, while at the same time putting the Japanese safe haven under extra selling pressure.

Earlier in the European morning, another disappointing result from the German calendar saw Factory Orders extending the downtrend and contracting at a monthly 2.1% in December.

EUR/JPY relevant levels

At the moment the cross is advancing 0.07% at 120.86 and faces the next hurdle at 121.15 (weekly high Feb.5) followed by 121.25 (200-day SMA) and then 122.87 (2020 high Jan.16). On the downside, a drop below 120.40 (100-day SMA) would expose 119.77 (2020 low Jan.30) and finally 119.65 (low Nov.25 2019).