EUR/JPY: struggles to gain traction despite higher stocks on Wall Street

Currently, EUR/JPY is trading at 128.65, down -0.07% on the day, having posted a daily high at 129.21 and low at 128.33.

Earlier, analysts at Scotiabank noted that EUR/USD had been weak and was underperforming all of the G10 currencies with the exception of GBP and NZD, weakening into and through the release of softer ZEW expectations data for both the euro area and Germany.

Meanwhile, USD/JPY has been on the march through the 109 handle and with the euro stabilizing in the US session amongst a strong performance on Wall Street (benchmarks up an average of around 1% at the time of writing and The Dow Jones Industrial Average was rallying and on track to book its sharpest one-day rise in about four months ), the cross is drifting higher although struggles at the 128.80 resistance in the shift. 

USD/JPY: keeping an eye on the broader tone - Scotiabank

EUR/JPY levels

EUR/JPY remains above its 127.46 late June low and tries to bounce off its current August low at 127.57. "As long as it holds, the one-month resistance line at 129.97 could be revisited. Below 127.46 we look for slippage to the May high at 125.81. Where are we wrong near term? Initial resistance at 130.39 (August 16 high) guards the recent high at 131.40," explained analysts at Commerzbank.