EUR/JPY offered, falters once again around 131.00

EUR/JPY met a tough nut to crack at the 131.00 level.
Higher US yields sustains the selling bias in the Japanese yen.
The stronger dollar puts the risk complex under pressure.

Pablo Piovano FXStreet

After another failed attempt to surpass the 131.00 level, EUR/JPY came under pressure and receded to the mid-130.00s, where some initial contention turned up so far on Monday.

EUR/JPY looks to risk trends

EUR/JPY enters the new year on the defensive around 131.00 following two consecutive weekly advances, all after bottoming out in the 127.50/40 region in the last part of 2021.

The renewed bid bias surrounding the greenback put the risk-linked galaxy under pressure on Monday, helped at the same time by soaring US yields as market participants slowly return to the normality after the festive period.

The cross, in the meantime, looks to leave behind the key 200-day SMA, today in the 130.50 zone, to facilitate extra gains in the short-term horizon.

Earlier in the euro docket, the German and EMU final Manufacturing PMI came at 57,4 and 58.0, respectively, for the month of December. Later in the NA session, the final Manufacturing PMI is due seconded by November’s Construction Spending.

EUR/JPY relevant levels

So far, the cross is retreating 0.33% at 130.58 and a surpass of 131.02 (monthly high Dec.31) would expose 131.15 (Fibo level) and then 132.17 (Fibo level). On the downside, the next support comes at 130.50 (200-day SMA) followed by 129.79 (100-day SMA) and finally 127.51 (low Dec.20).

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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