- Euro continues downhill against the yen, albeit at a moderate pace.
- EUR / JPY supported on the 20-day moving average.
The EUR / JPY is falling for the third day in a row, albeit at a more moderate pace. The price fell to 126.20, the lowest level in almost a week. It is trading at 126.30, still with a dominant bearish tone.
In the Asian session, the rebound of the EUR / USD had given impetus to the EUR / JPY which climbed to the 126.50 area, but could not overcome it. Then the euro lost strength and the EUR / JPY’s pullback was moderated by the USD / JPY rebound.
The Rise in Treasury yields weakened the yen. In addition, the stock markets in the world remain in positive territory, supported by the expectation of vaccination, conversations for more stimuli and corporate results.
In the Eurozone, higher-than-expected inflation data were released, both for consumers and producers, without the figures having an impact on the euro. US data will be released on Wednesday including labor market (ADP) and services sector (ISM and Markit PMI) data.
From a technical point of view, the EUR / USD remains bearish in the very short term and the next strong support can be seen at 126.10 / 15. On the day chart, the cross is sitting above the 20-day moving average, which is a relevant level. A close clearly under could point to more weakness ahead.
Technical levels
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