EUR/JPY recedes from 2020 highs, back around 122.40

EUR/JPY loses momentum near the 123.00 mark.
EUR-weakness drags the cross lower.
US key data coming up next.

Pablo Piovano FXStreet

The increasing selling mood surrounding the European currency is motivating EUR/JPY to give away part of its weekly gains and retreat to the 122.40 area.

EUR/JPY meets resistance near 123.00, YTD highs

The January rally in the cross has run out of steam in the vicinity of the key barrier at 123.00 the figure during early trade, or fresh yearly peaks in response to the continuation of the leg lower in EUR.

The pick-up in the sentiment towards the greenback is putting its rivals under extra pressure on Friday, all following better-than-expected results from recent US indicators.

In the docket, earlier final CPI results in the broader euro area showed headline and Core consumer prices rose at an annualized 1.3% during December, matching the flash readings. Further data saw the November Current Account surplus inching higher to €33.9 billions.

Later in the NA session, all the attention will be on the release of US Industrial and Manufacturing Production figures and the flash print of the U-Mich index among other key indicators.

EUR/JPY relevant levels

At the moment the cross is losing 0.22% at 122.40 and a breach of 121.72 (21-day SMA) would aim for 120.93 (200-day SMA) and finally 120.16 (2020 low Jan.3). On the other hand, the next up barrier aligns at 122.87 (2020 high Jan.16) seconded by 123.35 (monthly high Jul.1 2019) and then 123.75 (monthly high May 21 2019).

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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