- EUR/JPY extends further the recent breakdown of 132.00.
- Key support emerges at the 130.00 level (June 21).
- Attention is on the US Consumer Confidence release.
The better mood in the dollar weighs on the risk-associated universe and forces EUR/JPY to slip back to the mid-131.00s, or multi-day lows.
EUR/JPY looks to US docket
EUR/JPY loses ground for the fourth consecutive session on turnaround Tuesday, as the selling bias in the European currency – and the rest of the risky peers – gathers extra steam.
The greenback manages to pick up fresh pace amidst rising cautiousness among investors ahead of the publication of the June’s Nonfarm Payrolls (Friday). The uptick in the buck comes despite the perseverant flat performance of US yields, with the US 10-year benchmark orbiting around 1.50% for yet another session.
So far, market participants continue to gauge the ongoing vaccination campaign vs. the rapid and unexpected pick-up in cases of the Delta variant of the coronavirus, fueling rumours of potential lockdown measures in some economies.
Data wise in Euroland, flash inflation figures in Germany for the month of June showed the CPI is expected to rise 0.4% MoM and 2.3% from a year earlier. In Japan, the jobless rate ticked a tad higher to 3.0% in May, the Jobs/Applications Ratio stayed unchanged at 1.09 and Retail Sales surprised to the upside after expanding 8.2% on a year to May.
EUR/JPY relevant levels
So far, the cross is retreating 0.24% at 131.55 and faces the next support at 130.76 (100-day SMA) followed by 130.04 (monthly low Jun.21) and then 129.58 (monthly low Apr. 23). On the flip side, a surpass of 132.32 (50-day SMA) would aim for 132.69 (weekly high Jun.23) and finally 134.12 (2021 high Jun.1).
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