EUR/JPY bounces off lows near 117.00
|- EUR/JPY met daily contention in the 117.00 mark on Monday.
- German Business Climate came in above estimates in May.
- Trade conditions remain flat following the US Memorial Day holiday.
The now better tone in the single currency is giving EUR/JPY extra wings, pushing it above the key 117.00 mark at the beginning of the week.
EUR/JPY focused on risk trends
EUR/JPY has managed to regain some poise after the earlier test of lows in the 117.00 neighbourhood, reversing at the same time two consecutive daily pullbacks, including the rejection from monthly tops in the mid-118.00s (May 21).
The risk-off sentiment looks somewhat mitigated at the beginning of the week, helped indirectly by the lack of activity in the US markets due to the Memorial Day holiday.
Earlier in the session, the German IFO survey came in on a positive note, improving the mood around the euro and collaborating with the daily upside. In fact, the German Business Climate rebounded to 79.5 for the current month, surpassing previous estimates.
Moving forward, investors’ attention will likely be focused on the US-China trade scenario, as well as, developments from the increasingly unstable situation between Hong Kong and China.
EUR/JPY relevant levels
At the moment the cross is gaining 0.13% at 117.45 and faces the next hurdle at 117.72 (monthly high May 21) followed by 119.03 (monthly high Apr.7) and finally 119.23 (200-day SMA). On the flip side, a drop below 116.99 (low May 22) would expose 115.44 (monthly low Apr.29) and then 114.39 (2020 low May 7).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.