EUR/JPY bounces off lows near 128.00

The renewed demand for the safe haven JPY keeps weighing on EUR/JPY today, which has found quite decent support in the 128.00 neighbourhood.

EUR/JPY upside capped near 129.00

After seven consecutive daily advances, the cross is now reverting the positive streak in response to the increasing demand for the Japanese currency after North Korea launched another missile earlier in the day.

In addition, the persistent selling bias around the shared currency is also collaborating with the downbeat mood around the cross, which failed to extend further yesterday’s brief surpass of the critical 129.00 the figure.

EUR, in the meantime, should stay vigilant on the ECB minutes, which are to be published on Thursday ahead of the key US payrolls on Friday. On the JPY-side, its demand will largely depend on the fresh geopolitical developments, mainly stemming from North Korea.

EUR/JPY relevant levels

At the moment the cross is losing 0.31% at 128.44 and a breach of 126.74 (10-day sma) would expose 125.09 (21-day sma) and then 124.86 (38.2% Fibo of the 2014-2016 drop). On the upside, the next hurdle lines up at 129.01 (2017 high Jul.3) seconded by 129.62 (50% Fibo of the 2014-2016 drop) and finally 132.30 (2016 high Jan.29).