EUR/JPY keeps lows near 121.60

The bid tone around the Japanese currency keeps EUR/JPY in the lower band of the daily range so far, around 121.60/50.

EUR/JPY lower on risk aversion

The negative performance of the Nikkei (-0.97%) has been propping up the demand for the Japanese Yen during the Asian trading hours, increasing the bearish bias in the cross to the area of daily lows in the mid-121.00s, while it keeps retracing from recent tops in the 122.70 region.

On the data front, second-tier releases in Japan saw Machine Orders contracting more than expected in April, while German trade surplus ticked a tad higher in April. Ahead in the session, ECB’s M.Draghi is due to speak.

EUR/JPY relevant levels

At the moment the cross is losing 0.28% at 121.60 and a breach of 120.75 (2016 low Jun.3) would expose 118.74 (2013 low Feb.25). On the other hand, the next up barrier lines up at 122.57 (20-day sma) ahead of 122.74 (high Jun.7) and then 123.67 (55-day sma).