EUR/JPY met resistance at the 100-hour SMA just above 121.00

• EUR/JPY alternates gains with losses around 121.00.
• Markets’ attention stays on UK politics and ECB event.
• Strong support remains in the 120.80/75 band.

The negative price action around the single currency is eclipsing the offered bias in the Japanese safe haven and keeps EUR/JPY under pressure around the 121.00 neighbourhood.

EUR/JPY looks to risk appetite trends

The cross is now trading without a clear direction around the 121.00 handle in the lower end of the recent range, adding to Monday’s gains and reversing six consecutive sessions in red figures.

Higher yields in the US money markets are lending oxygen to the selling bias around the Japanese safe haven, although this view is facing the increasing bearish note hitting the European currency as markets continue to factor in the probability of new easing measures by the ECB at its meeting later in the week.

Data wise today, the European Commission will release its advanced gauge of Consumer Confidence for the current month ahead of the publication of flash PMIs in core Euroland tomorrow and the ECB event on Thursday.

EUR/JPY relevant levels

At the moment the cross is receding 0.01% at 120.88 and a breakdown of 120.78 (low Jun.3) would expose 119.33 (low Feb.8 2017) and then 118.82 (2019 low Jan.3). On the upside, the initial hurdle aligns at 121.70 (21-day SMA) seconded by 122.32 (high Jul.10) and then 123.35 (monthly high Jul.1).