EUR/JPY slips towards 130.20

FXStreet (Edinburgh) - The Japanese yen is slightly appreciating against the European currency on Thursday, driving EUR/JPY to the 130.20 area so far.

EUR/JPY keeps 7-month lows

The cross has been losing ground since Monday, managing to revert yesterday’s drop to sub-130.00 levels, albeit it remains fragile in the area of multi-month lows. Expectations of further ECB easing at its December meeting continue to weigh on investors’ sentiment, while the safe have JPY has been reinvigorated following the steady stance of the BoJ at its recent meeting.

Ahead in the session, EMU’s Private Loans and M3 Money Supply are due followed by German Gfk’s Consumer Confidence. In Japan, key inflation figures are due early tomorrow, seconded by labour market results and Foreign Bond Investment.

EUR/JPY significant levels

The cross is losing 0.07% at 130.22 facing the immediate support at 129.72 (low Nov.25) followed by 126.85 (low Mar.13) and then 126.05 (low Apr.14). On the other hand, a breakout of 133.23 (high Nov.6) would expose 133.97 (55-day sma) and finally 134.22 (200-day sma).