EUR/JPY around 135.30, bearish pressures intact

FXStreet (Mumbai) - The cross in the EUR/JPY extends its downward trajectory into a third-day on Wednesday, as the euro is relentlessly offered across the board amid ripening risk sentiment ahead of the US inflation data.

EUR/JPY trades around 20-DMA

Currently, the EUR/JPY pair trades -0.31% lower at 135.30, recovering slightly from fresh session lows of 135.16. The EUR/JPY cross remains heavy as markets run towards higher-yielding currencies amid increasing risk-on trades backed by rallying global stocks.

Moreover, the euro came under renewed selling pressure across the board after the Eurozone CPI figures disappointed markets, dragging EUR/JPY further into losses.

However, the losses in EUR/JPY were cushioned as the yen lost footing and fell into the red versus the US dollar, with markets now eyeing the US CPI figures for further momentum.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 135.82 (Today’s High) levels and above which it could extend gains to 136.27 (Sept 10 High) levels. To the downside immediate support might be located at 134.94 (Sept 15 Low) below that at 134.62 (Sept 1 Low) levels.