EUR/JPY drops to 4-day lows near 126.30, ADP eyed

• The cross grinds lower and tests lows near 126.30.
• Daily upside capped in the mid-126.00s so far.
• US ADP report coming up next in the US docket.

The sentiment around the risk-associated assets remains under pressure today and is dragging EUR/JPY to new multi-day lows in the 126.30 region, coincident with the 10-day SMA.

EUR/JPY looks to risk, data

In the meantime, the cross is retreating for the third consecutive session today, coming under extra selling pressure in tandem with the recent and renewed bearish performance of the European currency.

Collaborating with the downside in the cross, the Japanese safe haven has been reclaiming some ground lost as of late in response to lack of further headlines from the US-China trade talks and increased Brexit uncertainty.

Later in the week, consensus among investors sees the ECB leaving its repo rate unchanged, while the focus of attention will also be on the revised projections from the central bank on growth and inflation.

EUR/JPY relevant levels

At the moment the cross is losing 0.09% at 126.38 and a breach of 126.19 (10-day SMA) would aim for 125.27 (55-day SMA) and then 124.17 (low Feb.8). On the upside, the next hurdle emerges at 126.79 (100-day SMA) seconded by 127.50 (2019 high Mar.1) and finally 128.10 (200-day SMA).