EUR/JPY: Upside faltered around 122.00 (again)

• EUR/JPY met resistance in the 122.00 region earlier on Thursday.
• The dollar rebounds and forces EUR to shed part of its daily gains.
• US Initial Claims will take centre stage later in the NA calendar.

The rebound in the greenback from multi-week lows is weighing on the single currency and is motivating EUR/JPY to recede from earlier peaks in the 122.00 neighbourhood.

EUR/JPY clings to gains around 121.60, looks to data

EUR/JPY is adding to Wednesday’s gains, although a move further north of the 122.00 yardstick still remains elusive for bulls despite the better tone in the risk complex.

Looking at the broader picture, the rebound from mid-June’s lows in the 119.30 region remains well and sound and always sustained by the persistent preference among traders for riskier assets. On the latter, hopes of a strong recovery post-pandemic seems to be dominating the scenario for the time being, relegating concerns over fresh coronavirus cases and the impact on the economic rebound.

Data wise, German trade surplus widened in May, although both exports and imports rebounded less than initially forecasted. Later in the session, investors’ attention will be on the weekly US Initial Claims as well as on the EuroGroup meeting.

EUR/JPY relevant levels

At the moment the cross is advancing 0.03% at 121.55 and faces the next up barrier at 121.97 (weekly high Jul.9) seconded by 122.11 (high Jun.16) and finally 124.43 (2020 high Jun.5). On the other hand, a drop below 119.69 (200-day SMA) would expose 119.31 (monthly low Jun.22) and then 118.85 (100-day SMA).