- EUR/JPY trades within a narrow range around the 121.00 area.
- ECB lowered its prospects for inflation and GDP this year.
- US Q2 GDP figures coming up next in the NA session.
EUR/JPY exchanges gains with losses at the end of the week around the key 121.00 neighbourhood.
EUR/JPY looks to upcoming data
The better tone in the US money markets have sparked a rebound in yields of the key US 10-year note, in turn lending wings to the Japanese currency and keeping the upside in the cross limited.
On the other hand, price action around the European currency remains neutral/bearish so far today, as market participants continue to digest the recent ECB event and potential looser monetary policy measures likely to be announced at the September gathering.
Adding weakness to EUR, the ECB lowered its forecasts for inflation and real GDP for the current month, as per the latest report from the ECB’s Survey of Professional Forecasters.
In the docket today, Tokyo Core CPI rose at an annualized 0.9% for the current month. Closer to home, German Import Prices contracted 1.4% MoM in June and 2.0% over the last twelve months.
EUR/JPY relevant levels
At the moment the cross is receding 0.09% at 120.98 and a breakdown of 120.05 (monthly low Jul.25) would expose 119.33 (low Feb.8 2017) and then 118.82 (2019 low Jan.3). On the upside, the initial hurdle aligns at 121.49 (21-day SMA) seconded by 122.32 (high Jul.10) and then 123.35 (monthly high Jul.1).
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