EUR/JPY slips to lows near 126.50

The now increasing bid tone around the Japanese yen is dragging EUR/JPY to the area of daily lows in the mid-126.00s.

EUR/JPY lower on risk-off pick up

The pair is challenging weekly lows in the 126.60/50 band, extending the leg lower after testing recent highs above the 128.00 mark earlier in the week. In the meantime, the safe haven JPY has regained ground lost in response to a softer footing in European equities and crude oil prices.

Data wise in Euroland, December’s Current Account has come in at €25.5 billion, bettering expectations. Ahead in the day, the ECB Accounts are due, although the event will hardly be a market mover, leaving all the action to the risk appetite trends and crude oil dynamics.

EUR/JPY relevant levels

At the moment the cross is retreating 0.04% at 126.64 facing the next support at 126.37 (low Feb.12) followed by 125.77 (low Feb.11) and then 124.96 (monthly low Jun.2013). On the flip side, a break above 128.19 (high Feb.16) would expose 129.09 (20-day sma) and finally 130.15 (55-day sma).

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