- The cross collapses to the 127.60 region amidst EUR-selling.
- EUR accelerates the downside on increasing USD-buying.
- German IFO came in on the soft side earlier in the session.
The increasing selling bias continues to hurt the shared currency at the end of the week and is now relegating EUR/JPY to the area of fresh 2018 lows in the vicinity of 127.50.
EUR/JPY in YTD troughs
The cross is coming under intense downside pressure following another bout of weakness hurting the European currency, while some bias towards the risk aversion also lend support to a higher Japanese Yen, all collaborating with the downside to levels last seen in August 2017.
In addition, poor releases in Germany today has been also weighing on EUR and at the same time undermining any attempt of recovery in the cross.
Looking ahead, the rally in the greenback is expected to keep the pressure on EUR for the time being and therefore opening the door to extra pullbacks.
EUR/JPY relevant levels
At the moment the cross is losing 0.27% at 127.69 facing the next support at 127.56 (monthly low Aug. 7 2017) followed by 127.00 (psychological level) and then 122.34 (monthly low Jun.15 2017). On the upside, a breakout of 129.88 (10-day sma) would expose 130.39 (21-day sma) and finally 131.41 (high May 14).
Share
