EUR / JPY offered below the 130.00 level

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  • EUR / JPY adds to Wednesday’s losses below 130.00.
  • The German flash CPI stood at 0.0 month-on-month and 4.1% year-on-year.
  • Final US Q2 GDP expanded 6.7% QoQ, beating estimates.

The now best tone in the Japanese safe haven drags the EUR/JPY to Thursday’s 3-day lows at 129.50.

EUR / JPY watch out for risk trends

EUR / JPY lost ground for the second consecutive session Thursday amid unfinished dollar price action and slight gains in the Japanese safe haven.

In bond markets, benchmark US 10-year bond yields pick up momentum and point back to the 1.55% level following mixed US calendar results. The US showed that the economy expanded 6.7% during the April-June period, while weekly claims increased by 362,000 weekly, in the week ending September 24.

Earlier in the session, the German labor market entered the soft side after the Unemployment Change fell less than expected by 30,000. Even in Germany, advanced inflation figures for the month of September cause the CPI to rise 4.1% year-on-year, the highest level since 1992, and stabilize on a monthly basis.

Technical levels

So far, the cross is down 0.21% to 129.53 and a breakout of 130.47 (September 29 weekly high) would expose 130.74 (September 3 monthly high) and then 130.75 (100-day SMA). On the downside, the next support comes at 129.50 (55-day SMA) followed by 129.39 (Fibonacci level) and finally 127.93 (September 22 monthly low).

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