- EUR/JPY fades the earlier spike to 121.70/75.
- EMU advanced May CPI came in below estimates.
- Trade concerns, declining yields remain the name of the game.
After a brief test of the 121.70/75 band, EUR/JPY has now returned to the 121.50 region.
EUR/JPY looks to trade, data
The cross is now giving away part of its daily gains to the vicinity of 121.70 and is receding to the mid-121.00s as the European currency lost some shine following daily highs and poor results from the euro docket.
In fact, the shared currency lost upside momentum after advanced inflation figures in Euroland for the moth of May showed headline consumer prices rose 1.2% from a year earlier and 0.8% YoY when stripping food and energy costs, both prints missing expectations. Additional data saw the jobless rate in the bloc shrinking to 7.6% during April.
Later in the week, the ECB event is expected to come in on the dovish side, particularly after today’s poor inflation prints in the bloc. Further publications in the region include Producer Prices and Retail Sales (Wednesday) and final Q1 GDP figures (Thursday).
EUR/JPY relevant levels
At the moment the cross is advancing 0.04% at 121.52 and faces the next hurdle at 121.73 (high Jun.4) followed by 122.55 (21-day SMA) and finally 123.75 (high May 21). On the other hand, a breach of 120.78 (low Jun.3) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’).
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