The persistent selling mood in the European currency has dragged EUR/JPY to fresh yearly lows in the 115.90/85 bands on Tuesday.
The cross is losing ground for the third session in a row in the first half of this week, briefly testing sub-116.00 levels for the first time in more than two years, always in response to the permanently offered bias around EUR and some buying mood lifting the Japanese safe haven.
Declining US yields are lending wings to the Japanese safe haven and are therefore undermining any potential rebound in the cross.
In the meantime, EUR remains well-entrenched into the negative ground so far in tandem with rising expectations of extra easing by the European Central Bank to be delivered later this month.
In the docket, Producer Prices in Euroland rose at a monthly 0.2% during July and 0.2% over the last twelve months. Later in the day, the key US ISM manufacturing is expected to bring in some volatility to the markets.
EUR/JPY LONG (Buy)
Enter at: 116.340