EUR/JPY struggles to find traction for 130 handle

Currently, EUR/JPY is trading at 129.67, up 0.42% on the day, having posted a daily high at 130.06 and low at 129.06

EUR/JPY has been in consolidation with a resurgence in US data and the dollar. This has been leaving the euro and yen sidelined as unattractive investments, especially with an unwinding of the N.Korea safe haven trade. 

JPY: Geopolitical panic over, for now - ING

Despite a rise in European stocks again overnight for the second day in a row, US stocks are, however, coming off today and have subsequently capped the rally to the 130 handle. Also, German GDP showed that Q2 German growth has slowed despite record employment with the data arriving 0.8% yy from 1.7% f/c was 1.9%. 

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY has severed its uptrend and remains under pressure. "Intraday rallies are indicated to terminate circa 130.00/76. Below 128.00 we look for slippage to the previous May high at 125.80. Where are we wrong near term? Initial resistance at 130.00 (minor psychological level) guards the recent high at 131.40. Only above here would re-introduce the 134.32/61.8% of the move down from 2014," argued the analysts.