The EUR/JPY retraces its earlier gains to the 131.90 level.
The yen’s higher note weighs heavily on the cross.
As the US markets are closed, trade conditions remain sluggish.
The euro and the Japanese yen benefit from the dollar’s downward bias, causing EUR/JPY to trade directionless around the 131.60 range on Monday.
Due to the lack of action in the US markets, EUR/JPY is struggling for direction around the lower end of its recent range and following Friday’s fall near 131.60.
Meanwhile, recent US payrolls data appear to have put a damper on expectations that the Fed may announce some tapering in the near future, reaffirming the FOMC’s patient approach until significant improvement in the labor market becomes more visible.
In June, the final Services PMI in booth Germany and the broader euro area stayed stable, while the Sentix Index showed investor confidence in Euroland increased to 29.8 for the month.
The release of the FOMC Minutes on Wednesday and the ECB Accounts on Thursday should be the focus of attention later in the week.
So far, the cross is down 0.02 percent at 131.63, with the next support at 131.27 (weekly low June 30), 130.94 (100-day SMA), and 130.04 as the next targets (monthly low Jun.21). A break of 132.43 (monthly high July 1), on the other side, would target 132.69 (weekly high June 23) and finally 133.00. (round level)./n
