EUR/JPY upside faltered just ahead of 123.00

• EUR/JPY moves higher and loses traction near the 123.00 handle.
• JPY trims earlier losses on renewed trade jitters.
• US final Q1 GDP figures next on the docket.

After climbing to the boundaries of the key 123.00 mark during early trade, EUR/JPY lost some upside momentum and is now holding on around the 122.70 area.

EUR/JPY upside capped ahead of 123.00

Despite the ongoing knee-jerk, the cross manages to keep gains for the second session in a row and remains on track to close its second consecutive week in the positive territory.

Renewed inflows into the Japanese safe haven reversed the initial spike in the cross after President Trump threatened to impose new tariffs on Chinese products and China unveiled terms to agree to a trade truce. All this news surprised markets ahead of the expected Trump-Xi meeting at the G-20 event in Japan in a couple of days and reignited trade fears

In the docket, earlier data saw the Consumer Confidence in Euroland dropping to -7.2 for the current month, coming in below expectations and extending the move down from May’s -6.5.

EUR/JPY relevant levels

At the moment the cross is gaining 0.11% at 122.66 and faces the next hurdle at 122.89 (high Jun.27) followed by 123.17 (high Jun.11) and then 123.75 (high May 21). On the other hand, a breakdown of 120.95 (low Jun.21) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017).