- EUR/JPY gathers further upside traction after recent lows.
- German, EMU Economic Sentiment surprised to the downside.
- Markets’ attention remains on the ECB, US CPI.
The mild selling bias in the Japanese yen seems to be enough to sustain the move higher in EUR/JPY to the 133.30 zone on turnaround Tuesday.
EUR/JPY meets support just below 133.00 so far
EUR/JPY reverses three consecutive daily pullbacks and manages to return to the area above 133.00 the figure in the first half of the week, all amidst the prevailing consolidative mood in the broader markets.
Indeed, the upside in the cross appears capped by shrinking US yields, with the 10-year benchmark now threatening to re-visit the key support around 1.50%, while yields of the German 10-year Bund also head lower to the -0.21% area.
Earlier in the session, the Economic Sentiment in both Germany and the Euroland unexpectedly receded to 79.8 and 81.3, respectively, for the month of June, which has also put the euro under extra pressure.
EUR/JPY relevant levels
So far, the cross is gaining 0.06% at 133.22 and a surpass of 134.12 (2021 high Jun.1) would pave the way for a test of 134.40 (monthly high Sep.2017) and then 134.50 (monthly high Oct.2017). On the other hand, the next support is located at 132.88 (monthly low Jun.7) followed by 132.52 (weekly low May 24) and finally 131.64 (weekly low May 12).
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