- EUR/JPY fades the initial spike to the 127.30 zone.
- USD-strength keeps the single currency under pressure.
- US Consumer Sentiment for the month of February next on tap.
EUR/JPY returns to the 127.00 neighbourhood after climbing as high as the 127.30 zone earlier in the session.
EUR/JPY under pressure on USD-buying
EUR/JPY looks to extend the positive streak on Friday and holds on to the 127.00 hurdle, coming under some selling pressure after recording new weekly tops around 127.30 during early trade.
The improved sentiment in the greenback has been exacerbated at the end of the week on the back of the moderate rebound in US yields, with the 10-year reference approaching the 1.19% zone. The move in the dollar weighs on the European currency and balances out the selling bias in the Japanese yen.
No relevant releases in the euro docket, while the preliminary print of the US Consumer Sentiment for the month of February will take centre stage later in the NA session.
EUR/JPY relevant levels
At the moment the cross is gaining 0.02% at 127.062 and faces the next up barrier at 127.30 (weekly high Feb.12) seconded by 127.49 (2021 high Jan.7) and then 130.18 (monthly high Nov.7 2018). On the other hand, a drop below 126.10 (monthly low Feb.4) would aim for 125.59 (low Jan.27) and finally 125.08 (2021 low Jan.18).