EUR / JPY remains offered, clinging to gains around 132.40

• The EUR / JPY fades the initial move to highs in the 132.55 / 60 zone.
• The main German IFO survey beat expectations in June.
• Final US Q1 GDP was 6.4%, claims increased by 411,000.

The EUR/JPY it trimmed early gains to the 132.70 area, or daily highs, and returned to 132.30 in the second half of the week.

EUR / JPY is still supported by 130.00

EUR / JPY posted gains for the fourth consecutive session on Thursday, managing to gain more than 2 cents since Monday’s slide and tested the 130.00 level.

The soft tone around the dollar coupled with lateralized activity in US yields now appears to have supported some buying interest in the Japanese safe haven, prompting the cross to pull back from the highs around 132.70 recorded during early trading.

The risk space maintains the offered bias and remains supported by the positive results of the European economic agenda at the beginning of the session after the IFO survey showed that the German business climate improved even more in June.

Data on the US agenda showed that the economy expanded 6.4% during the January-March period, initial claims increased 411,000 from the previous week, the sudden trade deficit widened to $ 88.11 billion in May and durable goods orders expanded 2.3% monthly in May.

Relevant levels

So far, the cross is gaining 0.02% at 132.32 and a breakout of 132.69 (June 23 weekly high) would point to 132.86 (20-day SMA) and then 134.50 (October 2017 monthly high). On the other hand, the next support emerges at 130.04 (monthly low on June 21) followed by 129.58 (monthly low on April 23) and finally 128.29 (weekly low on March 24).