• EUR/JPY trades with decent gains in the 133.30 region.
  • US yields recover ground lost and retake 1.60% and above.
  • US flash Q1 GDP came in at 6.4% QoQ.

Following a brief drop to the 132.90 region in early trade, EUR/JPY manages to regain the 133.00 mark and beyond on Thursday.

EUR/JPY looks consolidative near-term

EUR/JPY seems to be consolidating in the upper end of the range, shedding some ground after reaching new 2021 highs in the 133.70 region on Tuesday, levels last traded back in February 2018.

Global markets remain mostly side-lined so far in the second half of the week, with US 10-year yields regaining the 1.60% zone and German Bunds attempting a bounce off recent lows beyond -0.20%.

The uptick in US yields lends support to the selling pressure in the Japanese currency, in turn bolstering the upside momentum in the cross.

In the docket, the German Consumer Climate missed estimates at -7.0 in June. In the US calendar, another revision of US GDP figures showed the economy is now expected to expand 6.4% QoQ during the January-March period. Further data showed Durable Goods Orders contracting at a monthly 1.3% in April and Initial Claims rising 406K from a week earlier.

EUR/JPY relevant levels

So far, the cross is gaining 0.19% at 133.30 and a surpass of 133.61 (2021 high May 25) would pave the way for a test of 134.00 (round level) and then 137.50 (2018 high Feb.2). On the downside, 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).

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