- EUR/JPY keeps the tight range in the 121.60 region.
- EUR-selling drags the cross lower.
- Markets’ focus stay on upcoming US Non-farm Payrolls.
The now increasing selling pressure around the European currency is motivating EUR/JPY to trade within a narrow range in the 121.60 region.
EUR/JPY appears supported near 121.30
The cross is now trading around yesterday’s close against the backdrop of rising selling pressure in both the shared currency and the Japanese safe haven,
In fact, yields of the US 10-year note are rebounding beyond the 1.96% handle so far today, in turn fuelling the downbeat mood around the Japanese currency and hurting at the same time the sentiment in EUR via a stronger buck.
In the data space, German Factory Orders disappointed investors once again earlier today, contracting at a monthly 2.2% during May and putting the single currency under extra selling pressure.
Later in the NA session, all eyes will be upon the release of the monthly US labour market report, where the economy is seen adding 160K jobs, the jobless rate unchanged at 3.6% and Average Hourly Earnings rising 0.3% inter-month.
EUR/JPY relevant levels
At the moment the cross is gaining 0.02% at 121.67 and faces the next hurdle at 122.04 (21-day SMA) followed by 122.79 (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).
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