EUR/JPY drops to daily lows near 120.40 ahead of data

  • EUR/JPY loses momentum near 120.40.
  • Weekly upside capped around the 121.00 handle.
  • US Payrolls coming up next on the docket.

The selling mood around the single currency coupled with the renewed demand for the Japanese yen are dragging EUR/JPY to daily lows in the 120.40 area.

EUR/JPY focused on US calendar

The cross appears to have resumed the downside on Friday following two consecutive daily advances and Monday’s rejection from the key 121.00 neighbourhood, which remains a tough barrier ahead of the resistance area in the mid-121.00s.

In fact, sellers have now regained control and are weighing on the sentiment surrounding the single currency, all against the backdrop of the moderate recovery in the greenback.

In the meantime, the Japanese safe-haven continues to gather steam in tandem with declining US yields.

Earlier in the session, German Industrial Production contracted at a monthly 1.7% during October, coming in short of forecasts. Later in the NA session, investors will closely follow another monthly report of the US labour market. Consensus expects the economy to have added more than 180K jobs during last month and the jobless rate to remain unchanged at 3.6%.

EUR/JPY relevant levels

At the moment the cross is losing 0.26% at 120.45 and a breach of 120.09 (monthly low Dec.4) would expose 119.77 (55-day SMA) and finally 119.65 (low Nov.25). On the flip side, the next up barrier is located at 121.01 (monthly high Dec.2) seconded by 121.46 (200-day SMA) and then 121.47 (monthly high Oct.31).

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD rises above 50-HMA, bull reversal in the making?

The sell-off in AUD/USD seems to have run out of steam, courtesy easing RBA rate cut expectations after upbeat Australian CPI data. The pair trades above the 50-hour average. A close above 0.6765 would confirm a bullish reversal candlestick pattern on the daily chart. 


USD/JPY fills Monday's bearish gap ahead of Fed interest rate

USD/JPY has filled the gap created by Monday's negative open. Coronavirus fears have subsided in the last 24 hours, allowing recovery in USD/JPY. The respite could be short-lived if the Fed sounds dovish, sending the US dollar lower. 


Federal interest rate preview: Stable policy and an uncertain future

The course of the American economy has not altered since the previous FOMC meeting on Dec last year. 4Q growth is expected to be 2.1% when the preliminary figures are released by the Bureau of Economic Analysis on Thursday.

Read more

Gold: Bulls looking for a discount in $1560s

Gold top in the making with a weekly shooting star and weekly divergence. The price of gold has been found floundering between 1580 and the 1560s following a surge at the start of the year to the highest levels since March 2013 at $1,611.

Gold News

GBP/USD: 1.3080 questions break of short-term falling trendline

GBP/USD trades near 1.3025 during the early Wednesday’s trading session. The pair recently broke a three-day-old falling trend line but is still to cross the near-term key resistance confluence.