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  • EUR/JPY extends the rangebound theme below 122.00.
  • EMU Sentix index came in on the weak side in July.
  • Investors’ attention remains on Powell, FOMC, US CPI.

The now offered bias around the Japanese yen is lending some support to EUR/JPY in the 121.70 region.

EUR/JPY looks to data, risk appetite

The cross is prolonging the multi-session consolidative mood, managing to reverse the initial pessimism and rebound from the mid-121.00s. The upside, in the meantime, stays so far capped by the 122.00 mark, where converge the 21-day and the 10-day SMAs.

The lack of direction in EUR/JPY is reflecting the alternating risk appetite trends, as market participants continue to adjust to declining odds for a Fed’s rate cut this month after the solid prints from June’s Payrolls (224K). The rebound in US yields is sustaining the now offered mood in JPY, while EUR keeps holding on well around 1.1230 despite another disappointing result from the Sentix index (-5.8).

Earlier in the day, German trade surplus widened to €18.7 billion during May, while Industrial Production expanded at a monthly 0.3% in the same period, coming in below forecasts.

EUR/JPY relevant levels

At the moment the cross is gaining 0.05% at 121.80 and faces the next hurdle at 122.01 (21-day SMA) followed by 122.72 (55-day SMA) and finally 123.35 (high Jul.1). On the other hand, a breakdown of 121.31 (low Jul.3) would expose 120.95 (low Jun.21) and then 120.78 (low Jun.3).