- EUR / JPY continues to trade sideways, holding above 130.00 on Thursday.
- Fall in Treasury yields favors the yen.
The EUR / JPY continues with the lateral movements, with support around the 130.00 area and without being able to affirm itself above 130.50. On Thursday the cross is falling and is trading at 130.10, approaching the bottom of the range.
The weakness comes after the EUR / USD rally found resistance below 1.2000 and USD / JPY fell to new lows in weeks. The yen has strengthened on all fronts amid declining Treasury yields. The rise in equity markets limited the yen’s advance. The tone in the markets is reflected by the fall in the VIX index (also known as the “panic index”) which is in the area of ​​16.0, the lowest since February 2020.
In a few minutes, several US economic reports will begin to be released, the first being the weekly report of unemployment benefit requests and the data of retail sales. In the Eurozone, the final inflation data for Germany showed that the consumer price index rose 0.5% in March and 1.7% compared to a year ago.
From a technical point of view, range tours are expected to persist as long as the EUR / JPY don’t get either affirm on 130.50, which could lead to testing 131.00, or break below 129.70 decisively, which would suggest a more significant correction ahead.
Technical levels
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