- EUR/JPY moves lower and tests lows near 121.30.
- EMU, German services PMI surprised to the upside.
- US ADP report, ISM Non-manufacturing next of relevance.
The pick up in the demand for the European currency has motivated EUR/JPY to reverse the drop to 2-week lows in the 121.30 region although it remains under moderate selling pressure.
EUR/JPY looks to data
The cross is losing ground for the third session in a row, shedding more than 2 cents since Monday’s peaks near 123.50.
Alternating risk appetite trends have been sustaining the renewed interest around the safe haven JPY in tandem with increasing selling bias in the shared currency.
In fact, US-EU trade concerns, declining German yields have been all collaborating with the downside in the cross, which has picked up pace after it breached the 21-day and 10-day SMAs in the 122.00 neighbourhood.
Later in the day, the US docket will be key in determining the trends in the broader risk mood, as the ADP report, Factory Orders and the ISM Non-manufacturing are all due.
EUR/JPY relevant levels
At the moment the cross is losing 0.06% at 121.64 and a breakdown of 121.31 (low Jul.3) would expose 120.95 (low Jun.21) and then 120.78 (low Jun.3). On the flip side, the next hurdle emerges at 122.07 (21-day SMA) seconded by 122.94 (55-day SMA) and finally 123.35 (high Jul.1).
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