- EUR / JPY halts the initial rally at 130.50 on Monday.
- Trading conditions remain tight amid the US holiday.
- The EMU Sentix Index dipped a bit to 19.6 in September.
The stance offered in the Japanese yen motivates the EUR/JPY to return to positive territory at the beginning of the week.
EUR / JPY focuses on the ECB event
EUR / JPY manages to resume higher on Monday after Friday’s moderate pullback from new highs in the 130.70 / 75 zone, all after US nonfarm payrolls disappointed market participants in August.
Meanwhile, the consolidation theme prevails in global assets amid deteriorating trading conditions in response to the downturn in US markets due to the Labor Day holiday.
The cross halted the initial rally to the 130.50 zone on Monday, as the dollar’s decent recovery places the European currency under slight downward pressure.
On the euro agenda, meanwhile, the Sentix index, which measures investor confidence in the euro zone, fell to 19.6 for the current month, while previous data showed that German factory orders expanded by 3.4 % MoM in July, adding to the 4.6% expansion in June.
So far, the cross is gaining 0.02% to 130.31 and a breakout of 130.74 (September 3 monthly high) would expose 131.08 (100-day SMA) and then 131.75 (61.8% Fibonacci from June-August dip). On the downside, the next support comes at 130.08 (55-day SMA) followed by 129.38 (August 19 monthly low) and finally 127.93 (August 19 monthly low).