EUR/JPY tumbles to weekly lows in sub -120.00 levels ahead of FOMC
|- EUR/JPY moves below the 120.00 handle.
- US-China, Hong Kong jitters weigh on the cross.
- US FOMC minutes next of relevance in the calendar.
Further buying pressure in the Japanese yen has forced EUR/JPY to retreat to the area below the 120.00 handle, or new 3-day lows.
EUR/JPY focused on risk trends, FOMC
The cross has come under renewed downside pressure as of late and is now losing ground for the second session in a row in tandem with the deteriorating sentiment around the US-China trade front as well as rising social and political instability in Hong Kong.
In fact, inflows into the safe havens like the Japanese yen and bonds have gathered extra traction in past hours and keep weighing on the cross and dragging yields lower on Wednesday.
In the docket, German Producer Prices disappointed estimates once again, contracting more than expected during last month. Later in the NA session, the FOMC will publish its minutes from the latest meeting.
EUR/JPY relevant levels
At the moment the cross is retreating 0.24% at 119.95 and a breach of 119.45 (55-day SMA) would expose 119.24 (monthly low Nov.14) and finally 117.07 (monthly low Oct.7). On the flip side, the next up barrier emerges at 120.68 (high Nov.18) seconded by 121.47 (monthly high Oct.31) and then 121.78 (200-day SMA).
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