“¢ Disappointing German/Euro-zone data weighed on the shared currency.
“¢ The global flight to safety underpinned JPY and added to the selling bias.
“¢ A sustained break below 122.00 mark might open room for further decline.
The EUR/JPY cross tumbled back closer to multi-month lows, albeit has still managed to hold its neck above the 122.00 round figure mark.
The cross extended this week’s retracement from the 123.70-75 region and added to the overnight modest losses, with a combination of negative forces exerting heavy downward pressure through the early North-American session on Thursday.
The shared currency was weighed down by today’s disappointing release of flash manufacturing PMIs from the Euro-zone and Germany – the region’s largest economy. Adding to this, the German IFO also missed consensus estimates and added to the selling bias.
Meanwhile, the global flight to safety, amid growing worries over a full-blown US-China trade war continued benefitting the Japanese Yen’s relative safe-haven status and further collaborated to the pair’s intraday slump to the 122.00 neighborhood.
A follow-through selling below the mentioned handle will confirm a near-term bearish breakdown and set the stage for an extension of the ongoing downward trajectory towards challenging the key 120.00 psychological mark in the near-term.
Technical levels to watch
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