EUR/JPY clocks two-week highs, risk-on ahead

• The two-week highs in EUR/JPY likely indicate that stocks may remain bid, despite US Congress heading for a split.
• Eurozone retail sales, due at 10:00 GMT, could influence the demand for the Euros.

The EUR/JPY is currently trading at 129.64, having clocked a high of 129.86 earlier today. That level was last seen on Oct. 22.

Notably, the EUR/JPY is reporting moderate gains even though the US Congress is heading for a split. So, it seems safe to say that stocks may trade risk-on, brushing aside the heightened prospects of a fresh political turmoil and policy paralysis in Washington.

The buying interest in the EUR may also surge if the Eurozone retail sales print well above the estimate of 0.1 percent month-on-month and 1.7 year-on-year.

The pair, however, may drop into the red if the major index futures turn red. As of writing, the S&P 500 futures are reporting a 0.10 percent gain.

EUR/JPY Technical Levels