EUR/JPY reverses gains and trades close to 124.00
|- The upside momentum in EUR/JPY lost impulse in the 125.00 area.
- Rumours around further US stimulus hurt the greenback.
- Markets’ attention stays on the advance of the COVID-19 pandemic.
The renewed demand for the safe haven yen forces EUR/JPY to abandon the area of recent peaks in the 125.00 neighbourhood on Wednesday.
EUR/JPY meets resistance around 125.00
EUR/JPY reverses a 3-day positive streak in spite of the persistent improvement in the sentiment surrounding the risk complex.
In fact, market chatter around the US potential extra stimulus package keeps the dollar under heavy pressure for yet another session, particularly after latest news citing both US Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi could resume talks as soon as later in the evening.
Nothing scheduled data wise in Euroland, while ECB’s Luis De Guindos said earlier in the session that an early removal of current stimulus carries the potential to hurt the incipient recovery in the region and warned at the same time against financial risks stemming from mounting debt. Later in the session, another speech by De Guindos is due along with a speech by board member Phillip Lane.
In the US calendar, all the attention is expected to gyrate around the publication of the Fed’s Beige Book later in the session.
EUR/JPY relevant levels
At the moment the cross is losing 0.29% at 124.33 and a drop below 123.50 (100-day SMA) would aim for 123.01 (monthly low Oct.15) and finally 122.37 (monthly low Sep.28). On the flip side, the next up barrier is located at 125.08 (monthly high Oct.9) seconded by 126.46 (weekly high Sep.10) and then 127.07 (2020 high Sep.1).
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.