EUR/JPY has once again baulked, awaiting next key risk events
|- EUR/JPY has once again baulked ahead of the 55 day ma.
- Merkel appears to have regained control over her junior coalition.
EUR/JPY's upside failed at the 50-D SMA where it has been capped by since the 13th May. EUR/JPY is responding to political developments and risk whereby Us stocks are sinking into thin trade ahead of the US holidays.
German political issues have dragged on the cross of late but Chancellor Merkel appears to have regained control over her junior coalition partners which should ease new election worries offering scope for a break of the double top highs depending on the performance of USD/JPY.
Risks events coming up
However, with the North American markets closing down for holidays, price action is likely to remain subdued before further key data is released fro the US whereby the dollar will dictate the trajectory in the nearer- eyes on nonfarm payrolls. Another likely candidate for direction in the yen will possibly stem from whatever retaliation the Chinese will pursue with respect to US tariffs kicking in, scheduled for the 6th July.
EUR/JPY levels
Analysts a Commerzbank explained that EUR/JPY has once again baulked ahead of the 55 day ma at 129.66 and the 2018 downtrend line at 129.95: "The risk remains that we will see failure and a slide back to 125.75, which is the last defence for the 124.62 recent low. Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00."
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