• EUR/JPY hit a one-month high at 130.22 before turning to the downside.
• Euro remains under pressure in American hours, as EUR/USD falls under 1.1300.

The EUR/JPY failed to hold above 130.00 and is falling on Tuesday, weakened by a decline of the EUR/USD that is trading under 1.1300. The euro lost momentum during the American session.

Retreat from monthly highs

After the beginning of the American session the EUR/JPY started to correct lower,  before accelerating. Earlier on Tuesday, the EUR/JPY peaked at 130.22, the highest level since November 22. As of writing, it trades at 129.68, the daily low.

The decline of the EUR/USD under 1.1300 contributed to the slide of the euro. The pair is trading at 1.1290, breaking a three-day range that could point to further weakness ahead. The dollar gained momentum even amid risk appetite.

On Wall Street, the Dow has gained 0.43% and the S&P 500 0.10%, while the Nasdaq has dropped 0.12%. In Europe, most indices finished in green. Santa’s rally continues but the EUR/JPY has been unable to profit from it on Tuesday.

If the cross manages to regain an hold above the 130.00 area, the euro could look for further gains. On the downside, immediate support is seen at around 129.60, followed by 129.10.

Technical levels