The EUR/JPY cross remained under some selling pressure for the second consecutive day and has now moved on the verge of breaking below the 129.00 handle.
The shared currency maintained its offered tone through early European session on Monday and the cross has now reversed majority of its ECB-led up-move recorded last Thursday.
Today's slightly weaker than expected Euro-zone PMI prints failed to provide any fresh bullish impetus, while deteriorating market risk sentiment was seen boosting the Japanese Yen's safe-haven appeal and driving the cross lower at the start of a new trading week.
Looking at the broader picture, the cross has held above an important horizontal support near mid-128.00s and hence, it would be prudent to wait for a decisive break through the mentioned support before confirming that the cross might have topped out in the near-term.
Technical levels to watch
Sustained weakness below the 129.00 handle might continue to find support near 128.55-50 region, which if broken decisively could accelerate the slide towards the 128.00 mark en-route its next support near 127.40-35 region.
On the upside, mid-129.00s now seems to act as an immediate resistance, above which the cross could aim back towards reclaiming the key 130.00 psychological mark before eventually darting towards yearly tops resistance near 130.55-60 region.
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