EUR/JPY extends steady recovery move but struggling to break through 117.00 handle

Haresh Menghani FXStreet

The EUR/JPY cross traded with positive bias for the fourth consecutive session and was seen building on its steady recovery move from 5-month lows touched at the beginning of this week.

A fresh bout of buying interest around the shared currency, with the EUR/USD major reaching fresh three-week tops supported the pair's up-move. This coupled with a slight improvement in investors' risk-appetite, further weighed on the Japanese Yen's safe-haven appeal and collaborated to the pair's up-move back closer to 1-1/2 week high touched in the previous session.

EUR/USD inching higher to 1.0730, daily highs

Despite of its gradual rise, the cross remains capped below the 117.00 handle as investors continue to refrain from placing / carrying large bets heading into the crucial French Presidential election on Sunday. Hence, it would be interesting to see if the pair is able to build on to its recent gains or runs through some fresh supply in wake of nervousness ahead of the big event risk.

On the economic data front, the disappointing release of German PPI print for March did little to hinder the pair's up-move, albeit might have collaborated towards capping further up-move for the cross.

GMT	Event	Vol.	Actual	Consensus	Previous
Thursday, Apr 20
06:00	EUR Producer Price Index (MoM)		0.0%	0.1%	0.2%

Technical levels to watch

On a sustained move above the 117.00 handle, the cross is likely to dart towards 117.45-50 horizontal resistance before aiming to retest the very important 200-day SMA hurdle near 117.80-85 region. Meanwhile on the downside, retracement back below mid-116.00s is likely to find support near 116.20 level, below which the cross seems all set to head back towards 115.25 horizontal support en-route the key 115.00 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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