- The cross remains capped by the 125.00 handle.
- The European currency remains under pressure.
- US Non-farm Payrolls coming up on Friday.
The softer tone around the single currency is now weighing on EUR/JPY, forcing to recede from earlier daily highs in levels just below 125.00 the figure.
EUR/JPY looks to risk trends
After two consecutive daily advances, the cross met a tough resistance in boundaries of the 125.00 handle amidst the continuation of the sell off around the European currency.
In addition, the recent decline in the Japanese safe haven appears to be taking a breather today, attempting a sideline theme and somehow limiting the upside in the cross.
In the data space, Producer Prices in the euro region surprised to the downside earlier in the day, adding to yesterday’s lower-than-expected flash inflation figures in the bloc and last week’s German advanced CPI.
Moving forward, EUR is expected to remain under pressure amidst a solid note around the greenback and in light of Friday’s publication of non-farm payrolls for the month of March.
EUR/JPY relevant levels
At the moment the cross is retreating 0.05% at 124.77 and a breach of 123.65 (low Mar.28) would aim for 123.39 (low Jan.15) and then 118.82 (2019 low Jan.3). On the flip side, the initial up barrier emerges at 125.23 (55-day SMA) seconded by 126.11 (100-day SMA) and finally 126.78 (high Mar.20).
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