EUR/JPY looks weaker, approaches 131.00

The softer note in the European currency coupled with the upside pressure in the Japanese safe haven motivates EUR/JPY to recede further ground to the vicinity of the 131.00 support,

EUR/JPY faces interim support around 130.60

EUR/JPY reverses Monday’s uptick and trades in multi-day lows near the 131.00 neighbourhood on the back of the increasing selling pressure surrounding the single currency and the bid bias in the yen.

In fact, the continuation of the upbeat note in the greenback keeps weighing on the euro, while declining US yields lend extra legs to the demand for the Japanese currency.

Indeed, yields of the key US 10-year note break below the 1.60% level, reaching at the same time new 5-day lows and forcing the buck to give away part of the earlier gains.

It is a holiday in Japan, while the US data space saw the trade deficit widening to $74.40 billion in March (from $70.50 billion) ahead of the releases of the IBD/TIPP Index, Durable Goods Orders and the weekly report by the API on US crude oil supplies.

EUR/JPY relevant levels

So far, the cross is losing 0.26% at 131.21 and faces immediate contention at 130.00 (key level) seconded by 129.89 (50-day SMA) and finally 129.58 (weekly low Apr.23). On the other hand, a surpass of 132.36 (2021 high Apr.29) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21 2018).