EUR/JPY comes under pressure near 125.00 ahead of Powell

EUR/JPY fades the earlier uptick to the 125.60 region.
Markets faces a generalized cautious mood ahead of key event.
Fed’s Powell, US key data next of relevance in the NA session.

Pablo Piovano FXStreet

EUR/JPY remains side-lined around the 125.30 region in the second half of the week against the broad-based consolidation in the global markets.

EUR/JPY focused on Powell, data

EUR/JPY alternates gains with losses on Thursday amidst a mild buying bias surrounding the greenback, while market participants stay cautious ahead of the key speech by Chief J.Powell at the Jackson Hole Symposium.

Indeed, the cross managed to surpass the 126.00 mark earlier in the week, although the bullish attempt run out of steam soon afterwards despite positive results in fundamentals from the euro area.

Later today, the dollar is expected to remain under the microscope in light of the publication of the usual weekly Claims and another estimate of US GDP for the April-June period.

EUR/JPY relevant levels

At the moment the cross is losing 0.08% at 125.27 and a drop below 124.44 (weekly low Aug.21) would expose 124.28 (weekly low Aug.11) and finally 122.87 (monthly high Jan.16). On the other hand, the next hurdle aligns at 126.75 (2020 high Aug.13) followed by 126.80 (monthly high Apr.17 2019) and finally 127.50 (2019 high Mar.1).

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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