EUR/JPY looks offered below 126.00 ahead of US data

EUR/JPY drops to sub-126.00 levels, new multi-day lows.
The risk complex continues to give away part of recent gains.
US ISM Non-Manufacturing takes centre stage later in the NA session.

Pablo Piovano FXStreet

The selling bias in the European currency keeps weighing on EUR/JPY and is dragging it further south of the 126.00 mark on Thursday.

EUR/JPY in multi-day lows

EUR/JPY is down for the third session in a row on Thursday, intensifying the rejection from new 2020 highs just above 127.00 the figure recorded earlier in the week.

The moderate appreciation of the greenback has been sustained by the current profit taking mood in the risk-associated galaxy along with some decent results in the US docket, which ultimately helped the buck to rebound from recent +2-year lows (vs. the euro).

In the docket, the always-relevant ISM Non-Manufacturing will grab all the attention after the opening bell in Wall St. seconded by Markit’s final Services PMI and weekly Initial Claims. Earlier in the session, EMU’s Retail Sales contracted 1.3% MoM in July and German/EMU Services PMI came in a tad above the preliminary prints at 52.5 and 50.5, respectively, in August.

EUR/JPY relevant levels

At the moment the cross is retreating 0.08% at 125.76 and a drop below 124.44 (weekly low Aug.21) would expose 124.28 (weekly low Aug.11) and finally 122.87 (monthly high Jan.16). On the other hand, the next up barrier is located at 127.07 (2020 high Sep.1) followed by 127.50 (2019 high Mar.1) and finally 129.25 (monthly high Dec.2018).

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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