- EUR / JPY loses steam after hitting yearly highs near 131.00.
- The rally in the dollar weakens the rally.
- German producer prices surprised to the upside in March.
The dollar now regains some ground lost at the beginning of the session and causes a slight shake in the single currency, at the same time as motivating the EUR/JPY to retreat from the new initial highs just below 131.00 ..
EUR / JPY down from yearly highs
After posting fresh yearly highs near the 131.00 barrier, the EUR / JPY trimmed some of that move, though it manages to keep the offered bias well in place for now.
The favorable environment for the risk complex put the dollar under additional pressure during early trading, dragging the US dollar index (DXY) to fresh multi-week lows below 91.00.
The rally in US yields from Monday’s lows also gives JPY sellers some wings, thus helping the bullish move at the cross.
Turning to data in the euro zone, German producer prices beat estimates in March, gaining 0.9% month-on-month and 3.7% year-on-year.
Relevant levels
At the moment, the cross is up 0.20% to 130.42 and a move past 130.97 (April 20 high) would pave the way for a test of 131.00 (psychological level) and then 131.98 (July 17 high). 2018). On the other hand, the next support at 129.57 (April 8 low) followed by 129.21 (50-day SMA) and finally 128.29 (March 24 weekly low).
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