EUR/JPY deflates from weekly highs near 130.50.
The prevailing risk-off mood weighs on the cross.
Powell, Lagarde will discuss on policy at the ECB Forum.
EUR/JPY came under renewed selling pressure soon after hitting fresh weekly highs in the 130.50 region earlier on Wednesday.
EUR/JPY capped around 130.50
EUR/JPY fades the initial uptick to new weekly highs and therefore halts a 5-session positive streak, with moderate resistance emerging in the mid-130.00s for the time being.
Month-end flows, steady US yields across the curve and some negative news around the Chinese real estate developer Evergrande sustained the exodus from the risk complex in favour of the greenback and helped the US Dollar Index (DXY) to record fresh 2021 highs near the 94.00 yardstick.
In the euro docket, German Import Prices surprised to the upside in August, while the final print of the Consumer Confidence in Euroland measured by the European Commission came at -4 for the current month.
Later in the session, investors are expected to closely follow the debate on policy between Powell, Lagarde, Kuroda and Bailey at the ECB Forum in Sintra.
EUR/JPY relevant levels
So far, the cross is down 0.19% at 129.98 and a surpass of 130.47 (weekly high Sep.29) would expose 130.74 (monthly high Sep.3) and then 130.78 (100-day SMA). On the downside, the next support comes at 129.67 (200-day SMA) followed by 129.39 (Fibo level) and finally 127.93 (monthly low Sep.22).