EUR/JPY bounces off lows, regains 129.50

• The cross finds support in the 129.20 region.
• EUR remains weak across the board, trades in multi-week lows.
• Trump’s decision on Iran’s nuclear deal to drive sentiment later.

The softer tone around the European currency is dragging EUR/JPY to record fresh multi-week lows in the 129.20 region, just to rebound a tad afterwards.

EUR/JPY supported around 129.20

The cross is recording its tenth consecutive session with losses, falling uninterruptedly since April’s 2-month tops in the mid-133.00s against the backdrop of the persistent and strong sell off in the single currency.

The robust demand for the greenback in recent weeks has prompted EUR-sellers to quickly return to the markets and spark a wave of downside pressure, which now exposes the cross to YTD lows in the 129.00 neighbourhood.

Later in the day, all eyes will be on President Trump, as he is expected to announce his position on the Iranian nuclear deal in play since 2015.

EUR/JPY relevant levels

At the moment the cross is losing 0.50% at 129.42 and a breakdown of 129.24 (low May 8) would aim for 128.94 (2018 low Mar.23) and finally 127.56 (low Aug.18 2017). On the flip side, the next hurdle lines up at 131.36 (10-day sma) seconded by 132.40 (200-day sma) and finally 133.52 (high Apr.24).