EUR/JPY drops below 1-hour 100-MA

Omkar Godbole FXStreet Contributor

Reports that North Korea may consider a nuclear test of an unprecedented scale of the Pacific Ocean is pushing the Japanese Yen higher across the board.

EUR/JPY fell below the 1-hour 100-MA and printed a session low of 133.50. Risk aversion has pushed the S&P 500 futures down by 0.30%. The 10-year Treasury yield is down 2.6 basis points [bps]. European indices are set to open on a weak note as well. Consequently, the Japanese Yen is likely to remain bid.

The bearish move could gather pace if ECB President Draghi, during his speech at 8:00 GMT, talks down the common currency.

The EUR/JPY pair could still regain poise if the preliminary Eurozone and German manufacturing and services PMI indices beat estimates.

EUR/JPY Technical Levels

The cross currently trades at the 1-hour 100-MA level of 133.62. Breakdown of support at 133.25 [Sep 20 low on 1-hour chart] could yield a sell-off to 133.00 [zero levels] and 132.62 [1-hour 200-MA].

On the higher side, breach of hurdle at 133.83 [1-hour 50-MA] would open up upside towards 134.10 [1-hour 10-MA] and 134.39 [session high].

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 holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.