- EUR/JPY remains on the defensive near the 119.00 mark.
- EMU, German advanced Q4 GDP figures disappointed markets.
- US Retail Sales, Consumer Sentiment next of relevance in the calendar.
The persistent soft tone surrounding thje European currency in combination with the stead pace in the Japanese safe haven are forcing EUR/JPY to trade within an offered bias in the 119.00 neighbourhood.
EUR/JPY now looks to the US docket
The cross is down for the third consecutive session at the end of the week and is trading at shouting distance from YTD lows in the 118.90/85 band, levels last visited in mid-October 2019.
The euro remains on back footing so far this week, always on the back of poor prints from the EU docket and the unremitting rally in the buck.
Also weighing down on the cross, recent headlines pointing to an increase in COVID-19 cases in China and other countries have been also sustaining the demand for safer assets and tempering the upbeat mood in the risk-associated complex.
In the meantime, market participants are looking to the upcoming Retail Sales and the estimate of the Consumer Sentiment for near-term direction in the risk appetite trends.
EUR/JPY relevant levels
At the moment the cross is losing 0.04% at 118.98 and a drop below 118.86 (2020 low Feb.14) would expose 118.82 (‘flash crash’ Jan.3 2019) and then 117.07 (monthly low Oct.7 2019). On the upside, the next hurdle aligns at 120.57 (weekly high Feb.10) followed by 120.46 (200-day SMA) and then 121.15 (monthly high Feb.5).
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