EUR/JPY challenges 133.00, or 2-week lows

• EUR/JPY appears under pressure around 133.00.
• The better tone in the dollar puts the euro to the test.
• German Factory Orders came in short of estimates in April.

Investors’ sentiment slightly favours the dollar at the beginning of the week and motivates EUR/JPY to slip back to the 133.00 neighbourhood, or 2-week lows.

EUR/JPY focused on risk trends, ECB, US data

EUR/JPY sheds ground for the third consecutive session so far on Monday and returns to the 133.00 area on the back of the mild buying interest favouring the dollar, as market participants seems to have fully digested Friday’s discouraging Payrolls figures.

In the meantime, steady US yields fail to ignite a serious upside move in the dollar, while yields of the German 10-year Bund rise to the area above the key -0.20%.

In the meantime, markets appear side-lined coupled with rising cautiousness ahead of key data releases later in the week, namely the ECB interest rate decision and US inflation figures gauged by the CPI, both due on Thursday.

In the euro docket, German Factory Orders contracted at a monthly 0.2% in April, while the Sentix Index in the broader Euroland surprised to the upside at 28.1 in June.

EUR/JPY relevant levels

So far, the cross is losing 0.14% at 133.02 and faces the next support at 132.52 (weekly low May 24) followed by 131.64 (weekly low May 12) and finally 130.98 (monthly low May 5). On the upside, a surpass of 134.12 (2021 high Jun.1) would pave the way for a test of 134.40 (monthly high Sep.2017) and then 134.50 (monthly high Oct.2017).