EUR/JPY looks offered below the 130.00 level

• EUR/JPY adds to Wednesday’s losses below 130.00.
• German flash CPI came in at 0.0 MoM and 4.1% YoY.
• Final US Q2 GDP expanded 6.7% QoQ, above estimates.

The now better tone in the Japanese safe haven drags EUR/JPY to the area of 3-day lows in the mid-129.00s on Thursday.

EUR/JPY looks to risk trends

EUR/JPY loses ground for the second session in a row on Thursday amidst the inconclusive price action in the dollar and mild gains in the Japanese safe haven.

In the bonds markets, yields of the US 10-year reference note gather extra steam and re-target the 1.55% level following mixed results from the US calendar. Indeed, final US GDP figures showed the economy expanded 6.7% during the April-June period, while weekly Claims rose by 362K WoW in the week ended on September 24.

Earlier in the session, the German labour market came in on the soft side after the Unemployment Change shrank less than expected by 30K. Still in Germany, advanced inflation figures for the month of September see the CPI rising 4.1% YoY, the highest level since 1992, and coming flat on a monthly basis.

EUR/JPY relevant levels

So far, the cross is down 0.21% at 129.53 and a surpass of 130.47 (weekly high Sep.29) would expose 130.74 (monthly high Sep.3) and then 130.75 (100-day SMA). On the downside, the next support comes at 129.50 (55-day SMA) followed by 129.39 (Fibo level) and finally 127.93 (monthly low Sep.22).