- Earlier upside in the cross met resistance near the 126.00 handle.
- The cross turns negative on renewed EUR weakness.
- German, EMU manufacturing PMI came in below consensus.
The renewed offered bias around the European currency has dragged EUR/JPY to as low as the 125.30 handle, where it seems to have met some decent support.
EUR/JPY weaker on EUR-selling
The cross has once again met resistance in the vicinity of the critical hurdle in the 126.00 neighbourhood, sparking the current knee-jerk but so far finding contention in the 125.35/30 band.
Disappointing prints from advanced manufacturing PMIs in core Euroland hurt the sentiment around the shared currency earlier in the day and left it somewhat vulnerable ahead of the publication of the ECB minutes later in the session.
In the meantime, the recent dovish message from the Bank of Japan carries the potential to somehow limit the downside in EUR/JPY, although bouts of risk aversion are expected to undermine this view.
EUR/JPY relevant levels
At the moment the cross is gaining 0.01% at 125.66 and a surpass of 125.87 (high Feb.21) would expose 125.94 (high Feb.4) and finally 127.09 (high Dec.27 2018). On the other hand, the next support lines up at 124.98 (21-day SMA) seconded by 124.22 (low Feb.15) and then 124.17 (low Feb.8).
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