- EUR / JPY fell to the 128.60 zone on Thursday.
- Rising US yields push the dollar higher, force the yen down.
- US retail sales surprised to the upside in August.
After bottoming at new lows around 128.60, the EUR/JPY now he regains some composure and manages to get back close to the key 129.00 barrier.
EUR / JPY bounces away from 3-week lows
EUR / JPY extended the slide to the 128.60 region on Thursday as the dollar improved, although subsequent weakness in the Japanese currency encouraged the cross to attempt a bounce back near 129.00.
Indeed, US 10-year bond yields gained momentum and are moving to daily highs near 1.34%, keeping the dollar rallying and putting the single currency under additional pressure.
The firm tone of the dollar and US yields comes in response to the better-than-expected results of the US agenda, where major retail sales expanded 0.7% MoM in August, underlying sales they rose 1.8% month-on-month and the Philadelphia Fed improved to 30.7 in September. On the downside, weekly claims increased by 332,000 in the week ending September 11.
Technical levels
So far, the cross is down 0.21% to 128.94 and a breakout of the 129.54 level (200-day SMA) would point to a move to 130.29 (38.2% Fibonacci from the June-August drop) and then to 130.74 ( monthly maximum of September 3). On the downside, next support comes at 128.59 (July 20 monthly low) followed by 127.93 (August 19 monthly low) and 125.87 (200-week SMA).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
