EUR/JPY keeps the tight range around 131.60

EUR/JPY fades the earlier spike to the 131.90 zone.
The better note in the yen weighs on the cross.
Trade conditions remain thin as US markets are closed.

Pablo Piovano FXStreet

The negative bias around the greenback lends support to both the euro and the Japanese yen, motivating EUR/JPY to trade directionless in the 131.60 zone on Monday.

EUR/JPY looks to data, risk trends

EUR/JPY struggles for direction in the lower end of the recent range and following Friday’s pullback near 131.60, always amidst a tight trading range due to the inactivity in the US markets.

In the meantime, recent US Payrolls figures seem to have poured some cold water over rising speculations that the Fed could announce some tapering in the near term, reinforcing instead the patient stance from the FOMC until substantial improvement in the labour market becomes more evident.

In the calendar, the final Services PMI in booth Germany and the broader euro area remained firm in June, while the Sentix Index showed the investor’s confidence in Euroland improved to 29.8 for the current month.

Later in the week, the focus of attention should be on the release of the FOMC Minutes on Wednesday and the ECB Accounts on Thursday.

EUR/JPY relevant levels

So far, the cross is retreating 0.02% at 131.63 and faces the next support at 131.27 (weekly low Jun.30) followed by 130.94 (100-day SMA) and then 130.04 (monthly low Jun.21). On the other hand, a surpass of 132.43 (monthly high Jul.1) would aim for 132.69 (weekly high Jun.23) and finally 133.00 (round level).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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