EUR/JPY tumbles to 3-day lows near 115.30 ahead of data

EUR/JPY loses further momentum and drops to 115.30.
The sell-off in the European currency weighs on the cross.
US Initial Claims taking centre stage later in the NA session.

Pablo Piovano FXStreet

The euro continues to debilitate in the second half of the week and is now dragging EUR/JPY to the area of new 3-day lows around 115.40/30.

EUR/JPY looks to data

EUR/JPY is down for the third straight session on Thursday, coming under extra selling pressure after breaking below the 116.00 support, all on the back of the persistent weakness surrounding the shared currency.

In fact, the better mood in the greenback continues to weigh on the sentiment around the euro, as investors’ mood keep favouring the safer assets. Indeed, the buck stays firm after Chief Powell ruled out negative rates at his testimony on Wednesday despite reiterating that the recovery might take longer than initially forecasted.

In the docket, final German inflation figures came in a tad above the preliminary readings for the month of April. In the US, the focus of attention will be on the release of the weekly Claims, which continue to reflect the deterioration of the labour market in light of the coronavirus crisis.

EUR/JPY relevant levels

At the moment the cross is losing 0.25% at 115.47 and faces the next up barrier at 116.85 (monthly high May 12) followed by 117.77 (weekly high Apr.30) and finally 119.03 (monthly high Apr.7). On the downside, a drop below 115.36 (weekly low May 14) would expose 114.39 (2020 low May 7) and then 113.71 (monthly low Nov.9 2016).

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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