- EUR / JPY fades the initial rally to the 131.90 area.
- The improved tone in the yen affects the crossover.
- Trading conditions remain tight as US markets are closed.
The negative bias around the dollar supports both the euro and the Japanese yen, prompting the EUR/JPY to operate without direction in the 131.60 zone on Monday.
EUR / JPY watch out for data, risk trends
EUR / JPY struggles for direction at the lower end of the recent range and after Friday’s pullback it is trading near 131.60, always in the middle of a tight trading range due to the inactivity in the US markets.
Meanwhile, recent US Payroll figures appear to have poured some cold water on growing speculation that the Fed could announce a short-term cut, instead reinforcing the FOMC’s “patient” stance until it improves. substantial in the labor market becomes more apparent.
On the calendar, the final services PMI in the German stand and the euro zone in general was firm in June, while the Sentix index showed that investor sentiment in the euro zone improved to 29.8 for the month in course.
Later in the week, the focus of attention should be on the release of the FOMC Minutes on Wednesday and the ECB Accounts on Thursday.
Technical levels
So far, the cross is shedding 0.02% at 131.63 and faces the next support at 131.27 (June 30 weekly low) followed by 130.94 (100-day SMA) and then 130.04 (June 21 monthly low). On the other hand, an overshoot of 132.43 (monthly maximum of July 1) would point to 132.69 (weekly maximum of June 23) and finally to 133.00 (round level).
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