EUR/JPY retreats from 117.20, back to 116.70

EUR/JPY lost some upside bias and has now returned to the 116.70 area after briefly testing daily highs around 117.20.

EUR/JPY supported by JPY selling

Today’s inactivity in the Japanese markets has contributed to the current status quo around the safe haven yen, which has given away initial gains after the failed military coup in Turkey brought in some risk aversion early on Monday.

After a test of highs above the 117.00 handle, the cross has now retreated to 116.70 although it manages to keep its positive tone.

Ahead in the week, nothing worth mentioning data wise in Japan until Friday’s Manufacturing PMI, while German/EMU ZEW Survey will take centre stage tomorrow in Euroland.

EUR/JPY relevant levels

At the moment the cross is up 0.84% at 116.72 facing the next hurdle at 118.42 (high Jul.15) followed by 119.27 (55-day sma) and finally 122.11 (high Jun.24). On the flip side, a breach of 114.78 (20-day sma) would expose 110.54 (low Jul.8) and then 109.47 (post-Brexit low Jun.24).