- The upside in EUR/JPY appears limited above the 123.00 mark.
- Trade jitters, risk appetite trends should drive the mood in the cross.
- German Producer Prices surprised to the upside in April.
Alternating risk appetite trends are leaving EUR/JPY almost unchanged for the day following the recent failed attempt to extend the breakout of 123.00 the figure.
EUR/JPY still supported near 122.00
The cross continues to trade within a rangebound theme after bottoming out in the boundaries of the 122.00 neighbourhood during last week.
In spite of the recent collapse of US-China trade negotiations, the trade front should remain a key driver of the price action in the risk-associated space. In this regard, it is worth noting that consensus among investors keep pointing to an eventual agreement in the next months, somehow sustaining outflows from the Japanese safe haven.
News from the calendar saw German Producer Prices rising more than initially estimated during April, while the Current Account surplus in the broader euro bloc shrunk a tad to €24.7 billion in March.
EUR/JPY relevant levels
At the moment the cross is gaining 0.04% at 123.83 and faces initial resistance at 123.19 (high May 20) followed by 123.94 (21-day SMA) and finally 125.23 (monthly high May 1). On the other hand, a breach of 122.08 (low May 15) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’).
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