EUR/JPY weaker, challenges 132.00
- The softer tone around the single currency is dragging the cross lower.
- The critical support at the 132.00 handle comes under extra pressure.
- Easing geopolitical risks are bolstering JPY-selling.
The strong and renewed selling bias around both the Japanese safe haven and the European currency are now sending EUR/JPY to the vicinity of the 132.00 handle.
EUR/JPY supported near 131.80
After bottoming out in the 131.80 region during early trade, the cross managed to gather some traction and regain the 132.00 neighbourhood although still under heavy pressure.
EUR is moderately lower today following a pick up in the demand for the US Dollar on the back of diminishing geopolitical tensions.
In addition, the ECB minutes disappointed EUR-bulls today after members of the Council noted the lack of sustained evidence of inflation in the region. The minutes, at the same time, highlighted the Council’s ‘widespread concerns’ over risk of trade conflicts.
Adding to EUR downbeat tone, Industrial Production in the euro area expanded at an annualized 2.9% during February, less than initially forecasted.
EUR/JPY relevant levels
At the moment the cross is up 0.02% at 132.08 facing the next hurdle at 132.66 (high Apr.10) seconded by 133.07 (100-day sma) and finally 136.78 (high Jan.5). On the flip side, a breach of 132.12 (10-day sma) would aim for 130.98 (21-day sma) and then 129.97 (low Apr.3).