EUR/JPY drops to 2-month lows in the sub-124.00 region

• EUR/JPY picks up downside pressure and breaches 124.00.
• JPY-buying plus the softer EUR drags the cross lower.
• US Initial Claims, Philly Fed index next of relevance in the data space.

The persistent demand for the safe haven Japanese yen keeps EUR/JPY under pressure and forced it to breach the key support at 124.00 the figure on Thursday.

EUR/JPY looks depressed ahead of US data

EUR/JPY is prolonging the downside for the fourth consecutive session on Thursday, always in response to the change of heart among traders regarding the Japanese yen, which extends further its September rally.

The recovery in the greenback following Wednesday’s FOMC event has been weighing on the sentiment surrounding the risk complex, while the neutral/bearish performance in US 10-year yields appears to have been supporting the yen as of late.

Later in the NA session, the usual US weekly Claims will take centre stage seconded by the Philly Fed manufacturing index and housing data.

EUR/JPY relevant levels

At the moment the cross is losing 0.51% at 123.36 and a drop below 122.87 (monthly high Jan.16) would open the door to 121.97 (100-day SMA) and finally 120.83 (200-day SMA). On the upside, the next up barrier is located at 125.35 (21-day SMA) followed by 126.46 (weekly high Sep.10) and then 127.07 (2020 high Sep.1).