EUR/JPY flirting with lows near 119.40

The softer tone in both the European currency and the Japanese safe haven has dragged EUR/JPY to test the area of daily lows in the 119.40 area.

EUR/JPY stays in weekly lows

The cross is retreating for the third consecutive week so far, gravitating around 4-week lows in the 119.40/30 band and with some decent support emerging in the 109.00 neighbourhood seen on Wednesday.

EUR/JPY remains under pressure in light of the recent sharp retracement of the common currency, particularly after recent comments by ECB officials, who stated that market participants seem to have over-interpreted the central bank’s statement at the March meeting.

Nothing new from the JPY-side, which has lost momentum after the pick up in risk aversion gave some oxygen during the first half of the week.

In addition, lower-than-expected advanced CPI figures in the euro area for the current month are also adding to the weakness surrounding EUR.

EUR/JPY relevant levels

At the moment the cross is losing 0.06% at 119.41 facing the immediate support at 119.04 (low Mar.30) ahead of 118.98 (low Mar.29) and finally 118.18 (2017 low Feb.24). On the other hand, a surpass of 119.82 (high Mar.31) would expose 119.87 (high Mar.30) and finally 120.47 (high Mar.29).