EUR/JPY loses the grip and drops to 129.30

EUR/JPY tumbles to multi-day lows around 129.30.
The demand for the Japanese yen remains firm.
US Factory Orders next of relevance in the docket.

Pablo Piovano FXStreet

The now better tone in the Japanese yen weighs on EUR/JPY and drags it to fresh 2-week lows in the 129.30 region.

EUR/JPY weaker on JPY-buying

EUR/JPY accelerates the weekly losses and tests the 129.35/30 band, or multi-day lows, on the back of the moderate buying pressure around the Japanese currency.

In fact, yields of the US 10-year note faltered around the 1.20% level and triggered the current knee-jerk, favouring at the same time the upside pressure in the yen.

In addition, the recovery attempt in the dollar forces the risk complex to give away part of the initial advance.

In the docket, earlier releases saw the Producer Prices in the euro area rising 1.4% MoM and 10.2% YoY in June. In the US data space, Factory Orders are due next seconded by the IBD/TIPP Index and the speech by FOMC’s R.Clarida.

EUR/JPY relevant levels

So far, the cross is losing 0.34% at 129.25 and faces the next down barrier at 128.64 (200-day SMA) followed by 128.59 (monthly low Jul.20) and finally 128.29 (low Mar.24). On the other hand, a surpass of 130.56 (weekly high Jul.29) would expose 130.67 (38.2% Fibo of the January-June rally) and then 131.08 (weekly high Jul.13).

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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