EUR/JPY firmer, but upside remains capped by 129.50

The steady recovery seen in EUR/JPY cross lost legs once again near mid-1.2900, knocking-off the rate slightly lower, as focus now remains on the Eurozone trade data and US macro news for fresh impetus.

EUR/JPY back above 10-DMA at 129.45

The cross looks to extend the recovery above 129.50 levels, although remains poise to book the first weekly loss in five weeks.

The sentiment around the cross remains underpinned, largely on the back of some losses seen in the Yen against its American rival, in the wake of a better risk environment and higher longer-maturity Treasury yields.

Also, bullish momentum seen in EUR/USD amid subdued performance seen in the US dollar so far this session, also helps maintain the bids around EUR/JPY.

All eyes now remains on the US dataflow, including CPI, retail sales and industrial production, alongside the Fedspeaks for further momentum on the prices.  

Technical Levels

Higher side: 129.66/70 (Jul 13 top & 5-DMA), 129.90/94 (classic S1/ Fib S2), 130.59 (Jul 12 high)

Lower side: 129.16 (daily pivot), 128.65/63 (classic S1/ Fib S1), 128.11 (20-DMA)