EUR/JPY bounces off lows, still below 118.00

EUR/JPY drops to 117.70/65 during early trade.
EUR looks resilient despite miserable ZEW figures.
US July CPI figures next of relevance.

Pablo Piovano FXStreet

The persistent bid tone around the Japanese safe haven keeps EUR/JPY under constant downside pressure and close to yesterday’s 2019 lows in the mid-117.00s.

EUR/JPY weak on trade concerns, data

The prevailing risk-off mood continues to dominate the sentiment in the global markets, with the same usual suspect in centre stage, namely the protracted US-China trade conflict.

The omnipresent trade concerns keep fuelling the exodus to safer assets, lending extra oxygen to, among others, the Japanese Yen and thus collaborating further with the downside bias in the cross.

In addition, poor prints from the German and EMU Economic Sentiment for the month of August are also weighing on the European currency, although it remains reluctant to sustain a move lower for the time being.

Later in the session, US July inflation figures tracked by the CPI will be the main event.

EUR/JPY relevant levels

At the moment the cross is losing 0.19% at 117.84 and a breakdown of 117.51 (2019 low Aug.12) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016). On the upside, the next hurdle is located at 119.87 (high Aug.6) followed by 119.92 (21-day SMA) and then 121.38 (high Jul.30).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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