EUR/JPY challenges 2-day highs near 125.80

  • The cross moves higher on risk-on sentiment.
  • The upside momentum now targets the 126.00 area.
  • JPY-selling behind the up move.

The continuation of the upbeat mood around the riskier assets is bolstering today’s buying pressure in EUR/JPY to the current 125.70/80 band.

EUR/JPY looks to risk trends

The cross is extending the consolidative theme in the upper end of the range, although a breakout of the critical 126.00 neighbourhood still remains elusive.

Positive sentiment on the trade front remains the exclusive driver for the up move in the cross and the rest of the riskier peers, particularly after President Trump delayed the tariff deadline in response to recent progress in the US-Sino trade talks. According to latest news, Trump and Xi Jinping could meet once again at some point in the next month.

In the weekly docket, Chief Powell’s testimonies on Tuesday and Wednesday should keep investors vigilant on the views of the Federal Reserve regarding the balance sheet and the potential reassessment of QT. In Japan, Industrial Production, Retail Sales and unemployment figures are also due later in the week. In addition, flash inflation figures in the euro area and Germany should also keep investors entertained ahead in the week.

EUR/JPY relevant levels

At the moment the cross is gaining 0.35% at 125.84 and a surpass of 125.93 (high Feb.20) would expose 125.94 (high Feb.4) and finally 127.02 (100-day SMA). On the other hand, the next support lines up at 125.24 (10-day SMA) seconded by 124.22 (low Feb.15) and then 124.17 (low Feb.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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays sidelined around 1.1650, monthly resistance line in focus

EUR/USD picks up bids to 1.1642, keeping the two-day advances intact during the early Asian session on Monday. The currency major pair stays firmer above 10-day and 21-day EMAs amid bullish MACD signals. August month’s low adds to the upside filters.


GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.


Gold: Bears lurking at weekly trendline resistance

The price of gold has been supported by a dynamic weekly/daily trendline where bulls consolidated and finally made a break for the upside in the latter part of the week. The price move into the $1,800s but has failed to take out the weekly trendline resistant, so far. 

Gold News

Crypto bulls unfazed by flash crash

BTC closed more than 5% lower on the Thursday session, but buyers have stepped in to hold the Tenkan-Sen as support. ETH action shows that the recent rejection has caused some indecision. XRP does not have far to move to initiate a massive bullish breakout.

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more