EUR / JPY looks firmer around 130.00

Get real time updates directly on you device, subscribe now.

  • EUR / JPY reverses recent weakness and recovers 130.00.
  • The yen remains on the defensive against the rise in US yields, BoJ.

The selling pressure on the Japanese yen gives additional oxygen to the EUR/JPY and pushes it back to the 130.00 zone.

EUR / JPY retoma 130.00

After three consecutive daily pullbacks, the EUR / JPY appears to regain its smile at the end of the week due to the moderate selling bias in the Japanese safe haven.

In fact, the dollar continues to rise amid the better mood of US yields, which in turn favors the bias offered in the yen. Yields on the key US 10-year benchmark rose around 1.32% after briefly testing levels below 1.30% in the prior session.

The additional weakness around the JPY comes after the BoJ left its policy rate unchanged at -0.10% and the yield target at 0.00% at its meeting earlier in the session, while Governor Kuroda reiterated once again (and again and again) the central bank’s willingness to pump out additional stimulus if needed. However, the Bank of Japan revised down its growth forecasts and now forecasts that the economy will expand by 3.8% in 2021 (from 4.0%) and predicts inflation of 0.6% (from 0.1%).

On the data front, the final June CPI for EMU was in line with preliminary figures at 1.9% year-on-year and 0.9% for the core CPI.

Technical levels

So far, the cross has advanced 0.19% to 129.95 and an overshoot of 130.99 (weekly high on July 12) would point to 132.43 (monthly high on July 1) and finally 132.69 (weekly high on June 23). On the downside, immediate support is at 129.62 (monthly low on July 8) followed by 128.29 (weekly low on March 24) and then 128.30 (200-day SMA).

.
Source Link

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.