EUR/JPY recedes from fresh tops above 130.00

• EUR/JPY moves past the 130.00 hurdle on Tuesday.
• The broad-based risk-on mood lends support to the cross.
• EMU headline CPI reached 10-year highs at 3.0%.

The better tone in the risk complex sustains the upside momentum in EUR/JPY to levels past the psychological 130.00 mark on Tuesday.

EUR/JPY shifts the attention to US data

EUR/JPY extends the rebound from monthly lows just below 128.00 the figure (August 19) and manages to finally surpass the key barrier at the 130.00 yardstick in the first half of the week.

In fact, sellers keep the dollar under increasing pressure as investors continue to adjust to Powell’s speech last Friday, while month-end flows and profit taking also collaborate with the offered stance in the buck.

The cross moves higher and risk appetite stays buoyant despite disappointing results from the Chinese economy during early trade. Indeed, the Manufacturing PMI eased to 50.1 in August and the Services gauge slipped back into the contraction territory (<50) at 47.5.

Earlier in the euro docket, preliminary inflation figures in the broader euro area rose to a decade high at 3.0% for the current month, while the German jobless rate ticked lower to 5.5% in the same period.

Across the Atlantic, the FHFA’s House Price Index rose 1.7% MoM in June and house prices tracked by. The S&P/Case-Shiler index rose 18.5% on a year to June. Later, the Chicago PMI is also due followed by the always-relevant Consumer Confidence print measured by the Conference Board.

EUR/JPY relevant levels

So far, the cross is gaining 0.16% at 129.85 and a surpass of 13017 (weekly high Aug.31) would expose 130.56 (weekly high Jul.29) and then 131.08 (100-day SMA). On the downside, the next support comes in at 129.35 (200-day SMA) seconded by 127.93 (monthly low Aug.19) and finally 127.00 (round level).