EUR/JPY sinking with little news to drive the pair

  • The EUR is drifting lower despite risk-on tinges in the broader markets.
  • Syrian tensions gave way over the weekend and markets are upbeat that retaliatory strikes are off the table.

The Euro is drifting lower against the Yen, touching into 132.20 despite a notable lack of risk-off selling in the broader markets.

The EUR/JPY is struggling to separate itself from the 200-day EMA after recovering from lows in March, and bullish potential is being hobbled after a steep decline from February's two-plus year highs of 137.50.

The market opened surprisingly risk-on for the week following Middle East tensions culminating in coordinated missile strikes in Syria, but the Euro wasn't able to capitalize on the market's risk appetite and sunk against the safe-haven Yen to kick off the new week.

The data docket for both currencies is clear for Monday's action, and the pair will be exposed to overall market sentiment as the main driver.

EUR/JPY Levels to watch

Current resistance is priced in from Friday's high at 132.90, while bears will have to contend with support from the 34-day EMA at 131.60 and April's lows near the 130.00 major handle.

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