EUR/JPY bounces off lows, back near 124.50

• The cross finds support in the 124.25/20 band, session lows.
• Downside pressure remains for the third session in a row.
• EMU Trade surplus shrunk to €17 billion in December.

The European currency remains under pressure at the end of the week and is now taking EUR/JPY to the mid-124.00s, just above daily lows.

EUR/JPY looks to trade, data

Better news from the US-China trade front is lending extra oxygen to the risk-associated space and undermines at the same time the demand for the safe haven Japanese Yen.

Following this week’s meetings in Beijing, both US and Chinese officials agreed earlier today to resume talks next week in Washington, reigniting hopes that a deal appears now closer.

Earlier in the day, EMU trade surplus shrunk to €17 billion in December from November’s €19 billion surplus. Later in the session, ECB’s Board member B.Coeure is due to speak.

EUR/JPY relevant levels

At the moment the cross is losing 0.21% at 124.50 and faces immediate contention at 124.25 (hourly low Feb.15) seconded by 124.17 (low Feb.8) and then 123.39 (low Jan.15). On the other hand, a surpass of 125.54 (high Feb.13) would expose 125.85 (55-day SMA) and finally 125.94 (high Feb.4).