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  • EUR/JPY met strong hurdle near 118.20.
  • German unemployment came in on the positive side.
  • German advanced CPI for September next on the docket.

After regaining the 118.00 handle and above, EUR/JPY came under selling pressure and it has now returned to the 117.90 region.

EUR/JPY now looks to data

The cross has faded the initial optimism, returning below the 118.00 mark and starting at the same time the third week in row in the negative territory.

Alternating risk appetite trends continue to dominate the global sentiment at the beginning of the week, while market participants keep waiting for the resumption of trade talks between US and Chinese officials early next month.

Still on the trade front, some fresh jitters emerged earlier in the day after the White House slipped the chance of delisting Chinese companies from US markets and limiting investment of US companies in China.

In the data space, German Retail Sales reverted the previous’ month drop and expanded at a monthly 0.5% during August, while the jobless rate stayed unchanged at 5.0% and the Unemployment Changed shrunk more than expected by 10.0K. Later in the European afternoon, German flash inflation figures tracked by the CPI should grab all the attention.

EUR/JPY relevant levels

At the moment the cross is retreating 0.13% at 117.92 and a breakdown of 117.44 (low Sep.27) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3). On the upside, the next barrier aligns at 118.82 (55-day SMA) seconded by 120.01 (monthly high Sep.13) and then 120.31 (100-day SMA).