EUR/JPY under pressure, clings to gains around 130.30

EUR/JPY fades the initial uptick to 130.50 on Monday.
Trading conditions remain thin amidst the US holiday.
EMU’s Sentix index eased a tad to 19.6 in September.

Pablo Piovano FXStreet

The offered stance in the Japanese yen motivates EUR/JPY to return to the positive territory at the beginning of the week.

EUR/JPY focuses on the ECB event

EUR/JPY manages to resume the upside on Monday following Friday’s moderate pullback from new tops in the 130.70/75 band, all after the US Nonfarm Payrolls disappointed market participants in August.

In the meantime, the consolidative theme prevails in the global assets against the backdrop of diminished trading conditions in response to the inactivity in the US markets due to the Labor Day holiday.

The cross fades the early run to the mid-130.00s on Monday, as the decent recovery in the greenback puts the European currency under some mild downside pressure.

In the euro docket, in the meantime, the Sentix Index – which gauges the Investor Confidence in the euro area – receded to 19.6 for the current month while earlier data showed the German Factory Orders expanded 3.4% MoM in July, adding to June’s 4.6% expansion.

EUR/JPY relevant levels

So far, the cross is gaining 0.02% at 130.31 and a surpass of 130.74 (monthly high Sep.3) would expose 131.08 (100-day SMA) and then 131.75 (61.8% Fibo of the June-August drop). On the downside, the next support comes in at 130.08 (55-day SMA) seconded by 129.38 (monthly low Aug.19) and finally 127.93 (monthly low Aug.19).

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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