EUR/JPY remains under pressure and challenges 128.00

EUR/JPY extends the leg lower to the boundaries of 128.00.
US 10-year yields trade near recent lows around 1.30%.
Markets’ attention remains on the FOMC event on Wednesday.

Pablo Piovano FXStreet

EUR/JPY navigates the lower end of the range near the 128.00 neighbourhood on turnaround Tuesday, extending the bearish move for the sixth session in a row so far.

EUR/JPY focuses on the Fed

EUR/JPY loses ground for the sixth consecutive session and extends the failed attempt to move further north of the 130.30 area earlier in the month.

Despite the risk-off trade gave away some strength in past hours, persistent concerns around China’s Evergrande as well as the progress of the Delta variant continue to keep the risk complex under scrutiny.

In addition, yields of the US 10-year reference note moved lower and re-visit the 1.30% area, some 8 bps lower from last week’s tops past the 1.38% level.

No data releases on Tuesday leaves all the attention to the BoJ event in the first turn on Wednesday seconded by the more relevant monetary policy meeting by the Federal Reserve.

EUR/JPY relevant levels

So far, the cross is down 0.06% at 128.17 and a surpass of 129.57 (200-day SMA) would aim for a move to 130.00 (psychological level) and then 130.74 (monthly high Sep.3). On the downside, the next support comes in at 128.14 (monthly low Sep.20) followed by 127.93 (monthly low August 19) and 125.85 (200-week SMA).

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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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