- EUR / JPY does not stop the decline, even despite positive data from the Eurozone.
- USD / JPY crash continues to propel the Japanese currency.
EUR / JPY is falling for the second day in a row on Wednesday, as the yen strengthens across the board.. The cross fell to 129.20, the lowest level since Aug. 27. It remains under pressure in the area of the lows.
The yen explains the movement
On Wednesday, data on industrial production from the Eurozone were released showing a rise in July of 1.5%, above the expected increase of 0.6%. The report also included an upward revision from -0.3% to -0.1% of the June figures. The positive report did not serve the EUR / JPY.
The routes of the crossing continue to be determined by the Japanese yen, which does not stop advancing throughout the market, supported by the fall in the yields of Treasury bonds and also, to a lesser extent, the decline in the stock markets.
The US 10-year rate is at 1.27%, after hitting 1.35% on Tuesday. The drop came as a result of US inflation data and triggered a sharp decline in USD / JPY which is at a one-month low below 109.30.
The rise of the EUR / USD on Wednesday is limited to the declines of the EUR / JPY. The price of the cross is approaching 129.10 where the next relevant support is, followed by 128.75. A return above the 129.60 zone, where the 20 and 200 day moving average converge, would ease downward pressures.