EUR/JPY weaker, threatens to break below 123.00

• The upbeat momentum in the Yen drags the cross lower.
• US-China trade jitters lend extra support to JPY.
• Next on the downside emerges 122.39, June 2017 lows.

Trader jitters continue to lend oxygen to the Japanese safe haven and force EUR/JPY to trade closer to the key support at 123.00 the figure.

EUR/JPY looks to trade

The leg lower in the cross is gathering extra pace today in response to rising concerns on the US-China trade front. In addition, nervousness among investors remains on the rise in light of the upcoming meeting between US and Chinese negotiators in Washington.

In the meantime, the cross has dropped to levels last seen in early January near the 123.00 mark, also helped by the neutral/bearish mood around the European currency.

In the data universe, German Industrial Production expanded more than expected during March, while Bund yields continue their march south reflecting the inflows into safer assets.

EUR/JPY relevant levels

At the moment the cross is retreating 0.19% at 123.14 and a breach of 123.11 (low May 8) would aim for 122.39 (monthly low Jan.15 2017) and then 118.82 (2019 low Jan.3). On the flip side, initial hurdle emerges at 124.28 (10-day SMA) followed by 125.38 (55-day SMA) and finally 126.80 (high Apr.17).