EUR/JPY regains traction, looks supported near 127.50

• EUR/JPY challenges once again the mid-127.00s on Thursday.
• Markets remain side-lined on omicron jitters, upcoming US NFP.
• US yields trade in a mixed fashion; yen struggles vs. the dollar.

EUR/JPY manages to reverse the initial drop to the 127.50 region and so far posts decent gains just below 128.00 the figure on Thursday.

EUR/JPY looks to risk trends for direction

EUR/JPY bounces off the so far solid contention area around 127.50 on Thursday, always against the backdrop of the absence of clear direction in the global markets, a mild selling bias in the greenback and increasing cautiousness surrounding the progress of the omicron variant.

Indeed, the dollar appears offered amidst the mixed performance in US yields and despite another auspicious print from the weekly Claims in the US economy, all morphing into fresh legs for the European currency and the resumption of the upsid momentum in the cross.

In the euro docket, the unemployment rate in Euroland came down to 7.3% in October. In Japan, the Consumer Confidence stayed put at 39.2 in November and Foreign Bond Investment shrank by ¥1343.2B in the week to November 27.

EUR/JPY relevant levels

So far, the cross is gaining 0.26% at 127.95 and a surpass of 128.78 (weekly high Dec.1) would expose 129.59 (weekly high Nov.23) and then 130.53 (200-day SMA). On the downside, the next support comes at 127.48 (monthly low Nov.29) followed by 126.00 (round level) and finally 125.08 (2021 low Jan.18).