- Weakened euro, puts downward pressure on EUR / JPY.
- The cross corrects after hitting a two-week high on Friday.
EUR / JPY is retreating on Monday, continuing the pullback from two-week highs reached on Friday.. The price fell below 130.00 and bottomed out at 129.82. It remains close to the lows, with a bearish bias.
The weakness of the euro is among one of the main factors behind the decline in EUR / JPY. Both the common currency and the Swiss franc are among the worst performing on Monday, in a day of low liquidity in European markets due to the Easter holiday.
In turn, the yen remains on the defensive against a rise in the yields of Treasury bonds, to which is added the rise in the stock markets. This climate of optimism works against the yen.
On Wall Street, normal activity will return on Monday, which may generate greater movements. The PMI Markit and ISM reports from the service sector will be released in the US, as well as the factory orders report.
From a technical point of view, EUR / JPY has lost momentum and is correcting after the rally from the 128-130.30 area. The 130.05 area has become the first resistance to watch out for followed by 130.25. In the opposite direction, 129.60 is the immediate support that, if broken, would favor an extension of the retracement.
Technical levels
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