EUR/JPY dives deeper in red near 138.20

FXStreet (Mumbai) - EUR/JPY fell further into losses during the mid-European trades, as markets shrugged off upbeat EMU retail sales and employment data which failed to boost the shared currency versus the yen. While markets now await ECB decision for fresh cues on the cross.

EUR/JPY rises slightly post EMU data

Currently, the EUR/JPY pair trades -0.14% lower at 138.21, dropping from 138.40 levels post data release. EUR/JPY completely ignored upbeat economic releases from the Euro zone and accelerated losses largely driven by broad euro weakness.

Consumer spending at retailers ticked 0.7% higher in April m/m. On an annual basis, shopping appetites in the bloc increased by 2.2% in April, after edging up 1.7% in the March. While the unemployment rate in the 19-nation currency bloc reached 11.1% in April compared to a revised 11.2% booked in March.

However, the losses were cushioned by the weakening yen versus the greenback, pushing USD/JPY beyond 124.30 levels, ahead of a set of fresh US data releases.
Meanwhile, markets now turn their focus towards the major market mover, when the European Central Bank meets in Frankfurt, followed by a press conference from bank President Mario Draghi.

EUR/JPY Technical Levels

To the upside, the next resistance is located at 138.63 (Today’s High) levels and above which it could extend gains 139 levels. To the downside immediate support might be located at 138 below that at 137.60 levels.