- EUR / JPY hit a tough nut to crack at the 131.00 level.
- Rising US yields maintain the sell bias of the Japanese yen.
- The stronger dollar puts pressure on the space associated with risk.
After another unsuccessful attempt to break above the 131.00 level, the EUR/JPY it came under pressure and fell back to the 130.50 zone, where some initial containment appeared so far on Monday.
EUR / JPY looks for risk trends
EUR / JPY enters the new year on the defensive around 131.00 after two consecutive weekly gains, all after bottoming out at the 127.50 / 40 zone in the latter part of 2021.
New supply bias surrounding the dollar put the risk space under pressure on Monday, helped at the same time by rising US yields as market participants slowly returned to normal after the period. festive.
The crossover, meanwhile, seeks to outpace the key 200-day SMA, today at the 130.50 zone, to facilitate further gains on the near-term horizon.
Earlier on the euro agenda, the final manufacturing PMI for Germany and the EMU was 57.4 and 58.0, respectively, for the month of December. Later in the American session, the final manufacturing PMI should be supported by November’s construction spending.
Technical levels
So far, the cross is losing 0.33% to 130.58 and a breakthrough of 131.02 (December 31st monthly high) would expose 131.15 (Fibonacci level) and then 132.17 (Fibonacci level). On the downside, the next support comes at 130.50 (200-day SMA) followed by 129.79 (100-day SMA) and finally 127.51 (December 20 low).
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