- EUR/JPY regains the 118.00 handle and above.
- Rising US yields support JPY-selling.
- US PCE, Personal Income/Spending, U-Mich next on tap.
The rebound in US yields is fuelling further the selling bias in the Japanese safe haven and lifts EUR/JPY back above the critical hurdle at 118.00 the figure.
EUR/JPY looks to data, trade
The cross is finally seeing some light at the end of the tunnel following seven consecutive daily pullbacks, shedding nearly 3 cents since monthly peaks just above the 120.00 barrier.
The now better tone in yields of the key US 10-year note are sustaining the selling mood in JPY, which in turn morphs into extra upside in the cross. In the same line, the single currency has managed to put some distance from recent lows and is now staging a mild recovery.
In the meantime, investors’ focus remains on the US-China trade developments and the high-level talks scheduled for early October. Consensus among market participants is divided between hopes of a deal in the not-so-distant future on one side, and rising scepticism on the other.
Data wise in Euroland, September’s preliminary inflation figures in France came in below estimates and now see the CPI contracting 0.3% inter-month; Italian Consumer Confidence ticked a tad higher this month and the Consumer Confidence in the bloc improved to -6.5 during the same period of time.
Later in the NA session and likely to keep the attention on the broader risk appetite trends, US inflation figures tracked by the PCE is due seconded by Durable Goods Orders and Personal Income/Spending.
EUR/JPY relevant levels
At the moment the cross is advancing 0.33% at 118.14 and faces the next up barrier at 118.88 (55-day SMA) seconded by 120.01 (monthly high Sep.13) and then 120.36 (100-day SMA). On the flip side, a break below 117.44 (low Sep.27) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3).
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
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.