EUR / JPY seems offered below 133.00

• The EUR / JPY is trading within a tight range near 133.00.
• The US Department of Labor reported that initial claims for unemployment benefits fell by 34,000 to 444,000.

The improved tone in the Japanese currency contributed to the daily fall of the EUR/JPY back to the area below 133.00 on Thursday.

EUR / JPY down from yearly highs around 133.50

EUR / JPY adds to Wednesday’s small losses below 133.00 thanks to renewed demand from the Japanese safe haven and falling US yields.

Indeed, yields on key 10-year US benchmark trades are on the defensive after hitting highs after the FOMC Minutes released near the 1.70% area on Wednesday, amid a broad downward correction. on the dollar.

Meanwhile, the overall better mood prevails in the risk complex, as investors appear to have absorbed the latest FOMC Minutes released on Wednesday.

Earlier on the agenda, German producer prices rose 0.8% month-on-month and 5.2% year-on-year through April, while the EMU current account surplus widened to € 31 billion in March. In Japan, the trade surplus fell to 255.3 ¥ B over the past month (from 662.2 ¥ B).

Looking at US data, the Labor Department reported that initial claims for unemployment benefits fell by 34,000 to 444,000, the lowest level since mid-March last year. The Philadelphia Fed manufacturing index dropped from 50.2 to 31.5 in May, disappointing estimates of 43.

Technical levels

So far, the cross is gaining 0.02% to 132.94 and a breakout of 133.43 (May 19, 2019 high) would pave the way for a test of 133.48 (April 2018 monthly high) and then 134.00 (round level). On the downside, the next support at 131.64 (May 12 weekly low) was followed by 130.98 (May 5 monthly low) and finally 130.67 (50-day SMA).