EUR/JPY offered, falters once again around 131.00
|- EUR/JPY met a tough nut to crack at the 131.00 level.
- Higher US yields sustains the selling bias in the Japanese yen.
- The stronger dollar puts the risk complex under pressure.
After another failed attempt to surpass the 131.00 level, EUR/JPY came under pressure and receded to the mid-130.00s, where some initial contention turned up so far on Monday.
EUR/JPY looks to risk trends
EUR/JPY enters the new year on the defensive around 131.00 following two consecutive weekly advances, all after bottoming out in the 127.50/40 region in the last part of 2021.
The renewed bid bias surrounding the greenback put the risk-linked galaxy under pressure on Monday, helped at the same time by soaring US yields as market participants slowly return to the normality after the festive period.
The cross, in the meantime, looks to leave behind the key 200-day SMA, today in the 130.50 zone, to facilitate extra gains in the short-term horizon.
Earlier in the euro docket, the German and EMU final Manufacturing PMI came at 57,4 and 58.0, respectively, for the month of December. Later in the NA session, the final Manufacturing PMI is due seconded by November’s Construction Spending.
EUR/JPY relevant levels
So far, the cross is retreating 0.33% at 130.58 and a surpass of 131.02 (monthly high Dec.31) would expose 131.15 (Fibo level) and then 132.17 (Fibo level). On the downside, the next support comes at 130.50 (200-day SMA) followed by 129.79 (100-day SMA) and finally 127.51 (low Dec.20).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.