- EUR / JPY is keeping range trading unchanged on Monday.
- The JPY buy dragged the cross to a low of 129.70 initially.
- Japan’s flash industrial production contracted 1.3% month-on-month in February.
Increased buying pressure around the Japanese yen weighs on the EUR/JPY and it keeps it within the usual range around 130.00.
The persistent liquidation of the dollar gave additional strength to the European currency and the rest of the risk complex at the beginning of the week.
However, stable / declining US yields added to buying sentiment around the Japanese safe haven, resulting in further consolidation around the cross and undermining the euro-led upside potential.
On the calendar, advanced figures in Japan saw industrial production contracting to 1.3% monthly during February, while the adjusted trade surplus widened to ¥ 663.7 billion in March. Closer to home, the current account surplus in the euro zone as a whole more than doubled in February to € 13.3 billion.
Relevant levels
Right now, the cross is shedding 0.12% at 130.13 and faces the next support at 129.57 (April 8 low) followed by 129.13 (50-day SMA) and finally 128.29 (March 24 weekly low). On the other hand, a move past 130.68 (April 7, 2021 high) would pave the way for a test of 131.00 (psychological level) and then 131.98 (July 17, 2018 high).
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