EUR/JPY struggles for direction around 121.00

• EUR/JPY alternates gains with losses below the 121.00 mark.
• The yen regains some buying interest and weighs on the cross.
• Better-than-expected PMIs in the core Euroland lends support to EUR.

After climbing to fresh 4-week highs near 121.50 on Thursday, EUR/JPY met some selling pressure and it has now receded to the 121.00 area amidst exchanged risk-appetite trends.

EUR/JPY focused on China, data

Auspicious results from the preliminary readings of the manufacturing PMIs in the core euro area for the current month have given much-needed oxygen to the single currency and boosted the cross to levels just above 121.00 the figure during early trade.

However, unabated concerns around the Chinese COVID-19 have spurred the demand for the safe haven universe and at the same time mitigated the recent selling pressure in the Japanese currency, limiting the upside in the cross somehow.

In the docket, and other than European PMIs, market will publish its advanced gauges in the US economy for the month of February later in the session seconded by Existing Home Sales and several speeches from FOMC members.

EUR/JPY relevant levels

At the moment the cross is gaining 0.05% at 120.95 and faces the next barrier at 121.39 (weekly high Feb.20) followed by 122.65 (monthly high Dec.13) and then 122.87 (2020 high Jan.16). On the other hand, a drop below 118.46 (2020 low Feb.18) would expose 117.07 (monthly low Oct.7 2019) and finally 115.86 (2019 low Sep.3).