- EUR / JPY eliminates the previous rally to 131.90.
- A better yen tone affects the pair.
- Trading conditions remain weak even with closed US markets.
The negative bias around the US dollar supports both the euro and the Japanese yen, which led to EUR / JPY bargaining in the region at 131.60 on Monday.
EUR / JPY when looking at data and risk trends
The EUR / JPY pair is trying to trend at the lower end of the second range and after Friday’s withdrawal around 131.60, always in a close trading range due to inactivity in US markets.
Meanwhile, the recent number of jobs in the US seems to have been fueled by growing speculation that the Federal Reserve may announce some narrowing in the near future, and has instead strengthened the Federal Open Market Committee’s impatient stance until significant labor market improvements become clearer.
In terms of economic developments, the final services PMI in both Germany and the euro area remained strong in June, while the Sentix index showed that euro area investor confidence improved to 29.8 for the current month.
Later in the week, attention should be focused on issuing Wednesday’s minutes and minutes of FOMC meetings European central bank Thursday.
Related EUR / JPY levels
So far, the pair has fallen 0.02% to 131.63 and is facing further support at 131.27 (weekly low on June 30), followed by 130.94 (100-day SMA), then 130.04 (monthly low on June 21). On the other hand, overcoming 132.43 (monthly high on July 1) will focus on 132.69 (weekly high on June 23) and finally 133.00 (cyclical level).