EUR/JPY turns negative, recedes from tops above 130.00
- EUR/JPY climbed well past the 130.00 mark earlier.
- The better tone in the dollar weighs on the risk complex.
- US Producer Prices, flash U-Mich Index come up next.
The resumption of buying interest in the greenback is putting the European currency and its peers under further pressure at the end of the week.
EUR/JPY weaker on EUR-selling
After hitting new 2021 highs in the 130.30/35 band during early trade, EUR/JPY came under moderate downside pressure on the back of the renewed selling bias in the single currency.
In fact, the cross reached levels last seen in October 2018 beyond 130.00 the figure although the move run out of steam soon afterwards.
The resumption of the upside traction in US yields lend extra oxygen to the dollar and force the cross to give away earlier gains. In fact, yields of the key US 10-year note hover around the 1.60% area, close to recent peaks, after President Biden finally signed the $1.9 trillion fiscal stimulus package on Thursday.
In the docket, German final CPI rose 0.7% inter-month in February and 1.3% over the last twelve months. Additional data saw the Industrial Production in the broader Euroland expanding 0.8% in January.
Later in the US docket, February’s Producer Prices are due seconded by the advanced gauge of the U-Mich Index for the month of March.
EUR/JPY relevant levels
At the moment the cross is losing 0.03% at 129.98 and a drop below 128.18 (monthly high Mar.2) would aim for 127.30 (low Feb.17) and finally 127.29 (50-day SMA). On the upside, the next resistance is located at 130.34 (2021 high Feb.24) followed by 131.00 (psychological level) and then 131.98 (2018 high Jul.17).