EUR/JPY looks offered, returns to the sub-130.00 area
- EUR/JPY’s upside faltered once again in the low-130.00s.
- Lower US yields favour underpin the demand for the yen.
- Markets’ attention will be on the US calendar later in the session.
The better note in the dollar weighs on the sentiment surrounding the European currency and collaborates with the ongoing corrective downside in EUR/JPY on turnaround Tuesday.
EUR/JPY focuses on risk trends, US data
After two consecutive daily advances, EUR/JPY now loses the grip and recedes to the area below the psychological 130.00 mark amidst the resumption of the dollar demand and diminishing US yields.
In fact, the risk-off mood appears to have returned to the markets and forces the riskier assets to shed part of the recent advance, while market participants remain somewhat wary ahead of the FOMC event due on Wednesday.
Later in the docket, investors’ attention will be on the release of the key Consumer Confidence gauged by the Conference Board and the Durable Goods Orders seconded by house prices and the Richmond Fed Index.
Earlier in the session, the ECB’s M3 Money Supply expanded 8.3% on a year to June while Private Sector Loans expanded 4.0% on a yearly basis.
EUR/JPY relevant levels
So far, the cross is gaining 0.32% at 129.84 and a surpass of 130.35 (weekly high Jul.26) would expose 130.67 (38.2% Fibo of the January-June rally) and then 131.08 (weekly high Jul.13). On the downside, immediate support is located at 128.59 (monthly low Jul.20) seconded by 128.54 (61.8% Fibo of the January-June rally) and finally 128.50 (200-day SMA).
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.
