- EUR/JPY met resistance in the 120.60 region.
- EUR-selling is now weighing on the cross.
- German November flash CPI next of relevance.
The now offered momentum in the shared currency is forcing EUR/JPY to give away its initial gains and recede to the 120.45/50 band.
EUR/JPY now looks to data
After a brief move to the area of weekly highs near 120.60, the cross met some renewed selling pressure and it has now returned to the vicinity of 120.40, turning negative for the day.
In fact, after three consecutive daily advances, the cross has now faced quite a moderate hurdle in the 120.55/60 band in tandem with the loss of upside momentum in the European currency.
On the JPY-side, outflows from the safe-haven universe remain on the rise, always backed by speculations that a US-China trade agreement is close, while recent positive results from the US calendar have been also collaborating with the upbeat mood in the riskier assets.
Data wise in Euroland, the ECB published some gauges earlier in the day: M3 Money Supply expanded 5.6% (YoY) in October and Private Sector Loans rose 3.5% YoY during the same period. Additionally, the Consumer Confidence in the euro area came in a tad better at -7.2 for the month of November and Business Climate deteriorated to -0.23 in the same month.
Moving forward, the euro is expected to remain in centre stage in light of the publication of the preliminary inflation readings in Germany for the current month.
EUR/JPY relevant levels
At the moment the cross is losing 0.01% at 120.44 and a breach of 119.65 (low Nov.25) would expose 119.34 (100-day SMA) and finally 119.24 (monthly low Nov.14). On the flip side, the next up barrier is located at 120.68 (high Nov.18) seconded by 121.47 (monthly high Oct.31) and then 121.63 (200-day SMA).
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