EUR/JPY: Back below 120.00 on US-China political tensions

EUR/JPY has dropped below 120.00 on risk aversion.
The anti-risk Japanese Yen is drawing bids on the US-China political friction.
Beijing has urged the US to stop interfering in Hong Kong and has warned of retaliation.

Omkar Godbole FXStreet Contributor

EUR/JPY is currently reporting losses below 120.00, possibly due to the US-China political tensions and the resulting haven demand for the anti-risk Japanese Yen.

The US House of Representatives on Tuesday approved bipartisan legislation in support of human rights in Hong Kong, moving the Hong Kong Human Rights and Democracy Act of 2019 a step closer to becoming law.

The US move has irked China and the latter has urged Washington to stop using Hong Kong-related bills to interfere in China's internal matter. Beijing has also warned of retaliation, forcing markets to price in the possibility of escalation of political friction.

The Yen, therefore, is finding takers, and so is Gold, which is currently trading at $1,484 per Oz, having hit a low of $1,480 earlier today.

The anti-risk Japanese currency may continue to draw bids during the day ahead as the S&P 500 futures are losing altitude. As of writing, the equity index futures are reporting a 0.27% drop and the EUR/JPY pair is trading at 119.84, having hit a low of 119.74 soon before press time.

Also, experts believe the US wants to make full use of the Hong Kong turmoil and keep the fire burning before the next round of trade talks with China.

Technical levels

EUR/JPY

Overview
Today last price	119.83
Today Daily Change	-0.24
Today Daily Change %	-0.20
Today daily open	120.07

Trends
Daily SMA20	118.3
Daily SMA50	118.2
Daily SMA100	119.83
Daily SMA200	122.34

Levels
Previous Daily High	120.24
Previous Daily Low	119.12
Previous Weekly High	120.01
Previous Weekly Low	117.08
Previous Monthly High	120.01
Previous Monthly Low	115.86
Daily Fibonacci 38.2%	119.81
Daily Fibonacci 61.8%	119.54
Daily Pivot Point S1	119.38
Daily Pivot Point S2	118.69
Daily Pivot Point S3	118.26
Daily Pivot Point R1	120.5
Daily Pivot Point R2	120.93
Daily Pivot Point R3	121.62

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.