- The cross extends the upside and approaches 127.00.
- The better mood in riskier assets props up the upside.
- FOMC meeting next of relevance in the calendar.
The softer tone around the Japanese safe haven keep sustaining the up move in EUR/JPY to fresh 2-week highs near 126.70.
EUR/JPY now looks to FOMC meeting
The continuation of the selling bias around the greenback in collaboration with the upbeat sentiment in the risk-associated complex keeps supporting the up move in the cross to the vicinity of the critical 127.00 the figure and opening at the same time the door for a potential visit to the 200-week SMA at 127.13 and YTD highs at 127.50.
Later in the session, the message from the FOMC meeting is expected to lean towards the dovish side, while the new ‘dots plot’, the Fed’s balance sheet and projections of growth and inflation are seen in the centre of the debate.
Earlier in the day, German Producer Prices came in below estimates during February, contracting at a monthly 0.1% and rising 2.6% from a year earlier.
EUR/JPY relevant levels
At the moment the cross is gaining 0.15% at 126.65 facing the next up barrier at 126.74 (high Mar.20) seconded by 127.13 (200-week SMA) and finally 127.50 (2019 high Mar.1). On the other hand, a breach of 126.02 (21-day SMA) would aim for 125.17 (55-day SMA) and then 124.27 (low Mar.8).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stalls ahead of Reserve Bank of Australia’s decision
The Australian Dollar registered minuscule gains compared to the US Dollar as traders braced for the Reserve Bank of Australia monetary policy meeting. A scarce economic docket in the United States and a bank holiday in the UK were the main drivers behind the “anemic” AUD/USD price action. The pair trades around 0.6624.
USD/JPY extends recovery above 154.00, focus on Fedspeak
The USD/JPY pair trades on a stronger note around 154.10 on Tuesday during the Asian trading hours. The recovery of the pair is supported by the modest rebound of US Dollar to 105.10 after bouncing off three-week lows.
Gold rises as US job slowdown dampens Treasury yields
Gold price rallied close to 1% on Monday, late in the North American session, bolstered by an improvement in risk appetite due to increased bets that the US Federal Reserve might begin to ease policy sooner than foreseen. The XAU/USD trades at around $2,320 after bouncing off daily lows of $2,291.
TON crosses $200 million in Total Value Locked as its network integration continues to scale
In a recent development, the TON network surpassed $200 million in total value locked on Monday after seeing a major boost through The Open League reward program.
RBA expected to leave key interest rate on hold as inflation lingers
Interest rate in Australia will likely stay unchanged at 4.35%. Reserve Bank of Australia Governor Michele Bullock to keep her options open. Australian Dollar bullish case to be supported by a hawkish RBA.