- Euro remains under pressure against the dollar and the yen.
- The Japanese currency remains firm in the face of risk aversion and falling yields.
The EUR / JPY is falling modestly on Friday, although it has managed to stabilize and slightly move away from the lows. The price lost ground for the third day in a row and bottomed hours ago at 130.79, the lowest level since late April. It is trading just above 131.00, trying to stabilize.
The euro remains under pressure against the yen from a combination of factors. On the one hand, there is the strength of the dollar that keeps the EUR / USD depressed without being able to recover ground and in the area of 1.1900.
On the other hand, the yen maintains its strength after having managed to stop the rally of the USD / JPY. The drop in Treasury yields (the 10-year rate returned below 1.50%) and the decline in stock markets point in favor of the Japanese currency.
Approaching the 20-week mean
EUR / JPY is on track to have its worst weekly decline in more than a year. The cross has been weakened and if it extends the decline it would face the 20-week moving average around 130.50. This level also coincides with a large old resistance, which could now offer support.
Technical levels
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