EUR/JPY rebounds from 2019 lows near 116.40

EUR/JPY moves to 106.40 during early trade, new yearly lows.
US markets stay closed due to the Labor Day holiday.
German manufacturing PMI surprised to the downside.

Pablo Piovano FXStreet

After bottoming out in fresh 2019 lows near 116.40, EUR/JPY has managed to regain some traction and is now hovering around the 116.70 area.

EUR/JPY looks to trade, risk trends

The cross is down for the second session in a row on Monday, extending the downside to the 116.40 region following Friday’s sharp pullback, always in response to rising EUR weakness.

In fact, prospects of extra ECB easing as soon as this month, the continuation of the rally in the buck and unremitting slowdown in Euroland are all weighing on the sentiment surrounding the shared currency and are eclipsing at the same time the selling bias in the Japanese safe haven.

Data wise today, final manufacturing PMI in Germany came in a tad lower than the preliminary reading, while it stayed the same when comes to the broader euro bloc.

Nothing scheduled in the NA session, as markets are closed due to the Labor Day holiday.

EUR/JPY relevant levels

At the moment the cross is retreating 0.10% at 116.68 and a breakdown of 116.39 (2019 low Sep.2) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016). On the other hand, the next resistance is seen at 117.52 (10-day SMA) followed by 118.01 (21-day SMA) and then 119.87 (high Aug.6).

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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