- EUR / JPY falls to multi-day lows around 129.30.
- Demand for the Japanese yen remains strong.
The current improved tone of the Japanese yen weighs on the EUR/JPY and drags it to fresh 2-week lows in the 129.30 region.
EUR / JPY is further weakened by the purchase of the JPY
EUR / JPY accelerates weekly losses and tests the 129.35 / 30 zone, or multi-day lows, due to moderate buying pressure around the Japanese currency.
In fact, the yields of the US 10-year bond operated around the 1.20% level, favoring the upward pressure of the yen.
In addition, the attempt to recover the dollar forces risk assets to give up part of the initial advance.
On the economic agenda, data initially released showed that producer prices in the euro area increased 1.4% month-on-month and 10.2% year-on-year in June. On the other hand, US data showed that new orders for manufactured goods – factory orders, in the US increased by $ 7.4 billion, up 1.5%, to $ 506 billion in June, beating expectations for a 1% increase.
Technical levels
So far, the cross is losing 0.34% at 129.25 and is facing the next bearish barrier at 128.64 (200-day SMA) followed by 128.59 (July 20 monthly low) and finally 128.29 (March 24 low). On the other hand, a breakout of 130.56 (weekly high on July 29) would expose 130.67 (38.2% Fibonacci from the January-June rally) and then 131.08 (weekly high on July 13).
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