- EUR/JPY moves further north of the 122.00 handle.
- JPY depreciation behind the up move in the cross.
- US Payrolls expected to drive the sentiment later in the day.
The selling bias around the Japanese safe haven is has picked up extra pace today and is pushing EUR/JPY further north of 122.00 the figure, or fresh multi-day tops.
EUR/JPY looks to trade, risk trends, data
The lack of further headlines on the US-China trade front along with some mild pick up in yields of the key US 10-year note are all collaborating with the offered stance surrounding the Japanese currency at the end of the week.
In fact, the cross has been posting gains since Monday, extending at the same time the rebound from the 120.80 region recorded at the beginning of the week. The current squeeze higher is also reversing fourth consecutive weeks in the red territory.
In the data space, German Industrial Production contracted 1.9% MoM during April while the trade surplus shrunk to €17.0 billion during the same period. On the brighter side, French Industrial Production expanded beyond estimates at a 0.4% inter-month although the trade deficit widened a tad to €5.0 billion.
Later in the session, the US Non-farm Payrolls will be the critical event, with job creation seen at 185K during May.
EUR/JPY relevant levels
At the moment the cross is gaining 0.01% at 122.23 and faces the next hurdle at 122.37 (high Jun.7) followed by 123.75 (high May 21) and finally 123.98 (55-day SMA). On the flip side, a breakdown 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’).
Share
