EUR/JPY again reverses from 120.78, risk sentiment, Kuroda’s Speech will be in the spotlight

  • Oversold RSI triggered the EUR/JPY pair’s pullback amid the JPY weakness on Abe’s comments and the EUR recovery.
  • Brexit, EU’s stand over the UK-Iran tussle and Kuroda’s speech will be the key to watch.

With the recent surge in the Euro (EUR) buying interest and the Japanese Yen’s (JPY) weakness, the EUR/JPY is taking the bids to the 121.12 ahead of the European markets open on Monday.

The EUR seems to have benefited from the US Dollar (USD) weakness and likely positive outcome of the EU policymakers’ Brexit efforts. Also adding to the regional currency’s strength could be its readiness to help the UK over a tussle with Iran. Traders still await this week’s European Central Bank (ECB) meeting details for near-term direction.

On the other hand, the JPY remains on a back foot as the Japanese Prime Minister (PM) Shinzo Abe reiterated his support for October tax hike despite knowing downside risks of the measure. Mr. Abe gained the majority seat in Japan’s upper house election today and hence is capable enough to enforce the policies.

Moving on, Bank of Japan (BOJ) Governor Haruhiko Kuroda is scheduled to speak while German Buba Monthly Report will also flash lights on the economic strength of the bloc’s growth engine.

Technical Analysis

FXStreet Analyst, Ross J. Burland, spots the pair’s sustained trading below 55-day ma and the 3-month downtrend to portrays the bears’ command over the momentum:

Bears are lining up for a run to a 119.91 longer-term range 78.6% Fibonacci retracement ahead of 117.85 as the January spike low. A break out of the channel and above the 200-hour moving average that has a confluence with the 50% Fibo of same hourly short term rage opens a run to 122 handle and the 78.6% before the swing high top at 122.30. Above there we have the May 21, June and current July highs.

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.13 after ECB's stimulus boost

EUR/USD is trading above 1.13, the highest since mid-March. The ECB added €600 billion in fresh stimulus, more than expected. The bank's move joins German stimulus and hopes for a recovery. 


GBP/USD avances toward 1.26 amid improving mood

GBP/USD trades closer to 1.26, buoyed by USD dollar weakness stemming from a better market mood. US jobless claims have marginally disappointed yet other US figures are more upbeat. Markets are shrugging off concerns about a no-trade-deal Brexit.


Will race relations rock markets? election campaign, coronavirus, crippled economy all in the mix

America is divided by demonstrations against racial discrimination that come on the backdrop of the coronavirus epidemic and attempts for a recovery. Will this or something else eventually affect markets? Valeria Bednarik, Joseph Trevisani, and Yohay Elam have a lively discussion about all these topics.

Read more

Gold recovers further from 1-month lows, moves back above $1715 level

Gold added to its intraday gains and refreshed daily tops, around the $1718 region during the early North American session.

Gold News

WTI: Recovery remains capped below $37 mark amid OPEC+ uncertainty

WTI (July futures on Nymex) is ranging in the familiar trading band near mid-36s so far this Thursday, having failed yet another upside attempts just shy of the 37 mark.

Oil News