- EUR / JPY moves away from previous highs beyond 126.00 mark.
- Market sentiment is tilted slightly to the risk side.
- US durable goods orders in July are the order of the day in the register.
The best tone in the safe haven universe keeps riskier assets under pressure mid-week, EUR / JPY back to the mid-125.00 where some decent support seems to have emerged.
EUR / JPY data driven, risk trends
After breaking through the 126.00 barrier earlier in the session, EUR / JPY triggered a downward correction which has met the initial contention in the 125.40 / 45 band for the time being.
The cross cancels two consecutive daily advances so far on Wednesday, once again failing to move further north of the 126.00 barrier more convincingly. In fact, the resumption of risk aversion among market participants undermined the recent rally in EUR / JPY in the usual backdrop of alternating securities on the US-China trade front, US political uncertainty. and the relentless progress of the coronavirus pandemic.
Earlier in the calendar, consumer confidence in France with estimates at 94 for the current month. Across the pond, MBA mortgage applications contracted 6.5% from the previous week, while July’s durable goods orders are ahead, seconded by the report from the EIA on crude oil inventories.
Relevant EUR / JPY levels
For now, the cross loses 0.33% to 125.48 and a drop below 124.44 (August 21 weekly low) would expose 124.28 (August 11 weekly low) and finally 122.87 ( January 16 monthly high). On the other hand, the next hurdle lines up at 126.75 (13th August 2020 high), followed by 126.80 (17th April 2019 monthly high) and finally 127.50 (2019 high on 1st of March).