- EUR/JPY fades the earlier move to tops in the 132.55/60 band.
- The key German IFO survey came in above expectations in June.
- US final Q1 GDP came in at 6.4%, Claims rose by 411K.
EUR/JPY gives away earlier gains to the 132.70 area, or daily highs, and returns to the 132.30 region in the second half of the week.
EUR/JPY posts gains for the fourth consecutive session on Thursday, managing to gain more than 2 cents since Monday’s drop and test of the key 130.00 neighbourhood.
The soft note around the greenback coupled with the flat activity in US yields seems to have now support some buying interest in the Japanese safe haven, motivating the cross to recede from tops around 132.70 recorded during early trade.
The risk complex maintains the bid bias and stays supported by positive results from the euro docket earlier in the session after the IFO survey showed the German Business Climate improved further in June.
Data in the US docket saw the economy expanding 6.4% during the January-March period, Initial Claims rising 411K from a week earlier, the flash trade deficit widening to $88.11 billion in May and Durable Goods Orders expanding at a monthly 2.3% In May.
So far, the cross is gaining 0.02% at 132.32 and a surpass of 132.69 (weekly high Jun.23) would aim for 132.86 (20-day SMA) and then 134.50 (monthly high Oct.2017). On the other hand, the next support emerges at 130.04 (monthly low Jun.21) followed by 129.58 (monthly low Apr. 23) and finally 128.29 (weekly low Mar.24).
