EUR/JPY backing into 129.50 as the drop continues

• Euro falls for a ninth straight day against the Yen.
• A lack of meaningful data on the calendar leaves EUR/JPY to twist on overall market sentiment.

The EUR/JPY stumbled lower once again on Tuesday, and is now trading into 129.35.

The Euro has declined against the Yen for nine consecutive trading days, declining over 3% from April's high of 133.25. The Euro has come under pressure with Eurozone economic indicators beginning to lag consistently, carrying the "first quarter downturn" many expected into the second quarter and showing signs of not going anywhere.

The Euro and the Yen are both sparsely scheduled this week, with mostly low-tier macro figures on the docket. Japan's foreign reserves ticked lower from 1.268 trillion to 1.25 trillion and their Labour Cash Earnings lifted by 2.1% (prev. 1.0%), while the Leading Economic Index drops at 05:00 GMT, expected at 105.2, a contraction from the previous 106.0.

EUR/JPY levels to watch

The pair is set to challenge March's lows near the 129.00 major handle, while a bullish correction is ultimately capped by the 200-day SMA at 132.30, but the lack of exhaustion on the overall bear trend could put some pressure on a pullback at the 50.0 Fibo level near 131.20.