EUR/JPY Deflates from Highs, Returns to 123.20
The renewed weakness around the single currency remains the exclusive drag for EUR/JPY for the time being, now coming down from overnight tops near 123.40.
EUR/JPY between EUR-selling and BoJ rumours
Fresh
selling pressure in the single currency seems to be capping occasional
bullish attempts in the cross, which remains unable to capitalize the
recent wave of JPY weakness backed by rumours of further easing by the
BoJ, likely to be announced at next week’s meeting.
In the
meantime, the cross continues to consolidate between 123.00 and 124.00
so far this week, looking to put further distance from April lows in the
mid-122.00s.
Data wise in Japan, February’s Industrial
Production figures are due tomorrow, while final EMU’s March CPI is
expected later in Euroland.
EUR/JPY relevant levels
At
the moment the cross is losing 0.10% at 123.16 facing the next support
at 122.52 (low Apr.7) followed by 121.98 (2016 low Mar.1) and then
118.74 (2013 low Feb.25). On the other hand, a surpass of 124.38 (38.2%
Fibo of 121.98-128.26) would expose 125.51 (20-day sma) and finally
126.25 (55-day sma).
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