EUR/JPY off highs, back below the 120.00 mark

• EUR/JPY met resistance in the 120.10/15 band.
• EUR stays week after German IFO.
• EMU, German advanced CPI next of relevance in the week.

The increasing selling pressure around the Japanese safe haven is propping up the daily upside in EUR/JPY despite the sour mood surrounding the European currency.

EUR/JPY looks to trade, risk trends

The cross is seen some respite after two consecutive daily pullbacks on the back of the improved sentiment in the risk-associated complex at the beginning of the week, which in turn transpired into further weakness in the yen.

In fact, the cross has managed to regain the 120.00 neighbourhood earlier in the session – area coincident with the 10-day SMA – although the return of EUR-bears has undermined the continuation of the recovery to levels beyond the 120.10 area so far on Monday.

Data wise in Germany, the IFO survey noted the Business Climate improved a tad to 95.0 in November, while Current Assessment came in at 97.9 and Business Expectations at 92.1, all prints ticking above October’s readings.

In japan, Retail Sales, inflation figures and Industrial Production should keep the attention on the yen in the next days.

EUR/JPY relevant levels

At the moment the cross is gaining 0.16% at 119.88 and faces the next up barrier at 120.68 (high Nov.18) seconded by 121.47 (monthly high Oct.31) and then 121.71 (200-day SMA). On the other hand, a breach of 119.39 (100-day SMA) would expose 119.24 (monthly low Nov.14) and finally 117.07 (monthly low Oct.7).