- EUR/JPY moves lower from recent tops beyond 123.00.
- The firm demand of JPY weighs on the cross.
- US CPI figures next of relevance in the docket.
The now better mood surrounding the Japanese safe haven is forcing EUR/JPY to lose some traction and refocus on the downside around 122.70.
EUR/JPY focused on risk trends
The cross is alternating gains with losses so far this week, with the upside limited at yesterday’s peaks near 123.20 and the mid-122.00s holding the downside for the time being.
Rising trade concerns have prompted a correction lower in US yields and sparked some risk aversion, morphing into further support for the Japanese currency and adding to the downside momentum in the cross.
Nothing relevant in the euro docket today, while Producer Prices in Japan contracted at a monthly 0.1% during May. Later in the day, US inflation figures measured by the CPI are expected to dictate the sentiment among traders.
EUR/JPY relevant levels
At the moment the cross is losing 0.18% at 122.68 and a breakdown of 122.37 (21-day SMA) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017). On the upside, the next hurdle aligns at 123.17 (high Jun.11) seconded by 123.75 (high May 21) and finally 123.89 (55-day SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.