- EUR/JPY loses the grip and records daily lows in the 115.60/55 band.
- Risk-off sentiments awakes on further US-China effervescence.
- US Retail Sales, U-Mich index in the limelight later in the NA session.
The now firmer demand for the safe haven yen is dragging EUR/JPY further south to the 115.60 region, or daily lows.
EUR/JPY offered on risk-off, looks to data
EUR/JPY is fading further Thursday’s tepid advance, returning to the 115.60 region after an ephemeral surpass of the key barrier at 116.00 the figure during early trade.
In fact, the leg lower in the cross has picked up extra pace on Friday following another bout of effervescence in the US-China trade scenario. This time, news cited the US is planning to cut Chinese tech giant Huawei off from chip suppliers, while Chinese response includes probable restrictions to Apple, Cisco, Qualcomm and airliner-maker Boeing.
In the docket, German and EMU advanced GDP figures noted these economies are expected to contract 2.2% and 3.8% inter-quarter during the January-March period, falling in line with previous estimates.
Later in the NA session, April’s Retail Sales and Industrial Production will be in the limelight along with the preliminary print of the U-Mich index for the current month.
EUR/JPY relevant levels
At the moment the cross is losing 0.23% at 115.57 and a drop below 114.85 ( 2017 low Apr.17) would expose 114.39 (2020 low May 7) and then 113.71 (monthly low Nov.9 2016). On the flip side, the next hurdle is located at 116.85 (weekly high May 12) followed by 117.65 (55-day SMA) and finally 117.77 (monthly high May 1).
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