EUR/JPY keeps the consolidation above 117.00 ahead of US data

• EUR/JPY moves within a consolidative mood above 117.00.
• The buying bias in the Japanese yen undermines the upside.
• US ISM Manufacturing next of relevance in the docket.

EUR/JPY is giving away part of Thursday’s strong advance although it manages well to keep business above the 117.00 mark for the time being.

EUR/JPY looks to data, risk trends

EUR/JPY has come under some selling pressure following two consecutive daily advances, including a rejection from multi-day highs in the 117.75/80 band (Thursday). In fact, Friday’s appreciation in the Japanese currency is undermining the continuation of the recovery in the cross.

In the meantime, risk appetite trends remain mixed and look to the developments from the coronavirus pandemic for near term direction, all amidst the persistent correction lower in the greenback – which in turn sustains the upside momentum in the yen.

In the docket, all the attention will be on the release of the US ISM Manufacturing for the month of April seconded by Markit’s final print of the manufacturing gauge during the same period.

EUR/JPY relevant levels

At the moment the cross is losing 0.22% at 117.09 and a drop below 115.44 (2020 low Apr.30) would expose 114.85 (2017 low Apr.17) and then 113.71 (monthly low Nov.9 2016). On the other hand, the next hurdle is located at 117.77 (monthly high Apr.30) followed by 119.03 (weekly high Apr.7) and finally 119.47 (200-day SMA).