EUR/JPY fails to build on data-led up-move, retreats back below 125.00 handle

Haresh Menghani FXStreet

The EUR/JPY cross failed to build on upbeat EZ data-led up-move and has now retreated back below the key 125.00 psychological mark.

Despite of the impressive German Ifo Business Climate Index and better-than-expected composite Euro-zone PMI print, the cross lacked any follow through buying interest and stalled its up-move near 125.40 region. In absence of any fresh fundamental triggers, the current level of slide could be solely attributed to some profit taking.

• IFO: Neither Brexit nor Trump policies have so far had concrete effects on German economy

A mildly offered tone surrounding the USD/JPY major, on safe-haven demand in wake of the political turbulance in the US and the latest terrorist attack in the city of Manchester, had failed to provide any additional boost to the pair's up-move during early European session and prompted traders to take some profits off the table following the pair's failed attempt to move past 125.35 horizontal resistance area for the second consecutive day.

• USD/JPY clings to the bearish bias – UOB

Despite of the pull-back, the cross, for the time being, has managed to hold above session lows near mid-124.00s touched in the aftermath of the latest terrorist attack in the city of Manchester. Hence, it would be prudent to wait for a follow through selling pressure before confirming that the cross might have topped out in the near-term.

Technical levels to watch

A follow through weakness below mid-124.00s immediate support, the pair is likely to accelerate the slide towards the 124.00 handle en-route an important horizontal support near 123.65 level. On the upside, 125.35 level now seems to have emerged as immediate resistance and is followed by resistance near 125.80 level (one-year high). A convincing break through yearly tops would set the stage for continuation of the pair's upward trajectory beyond the 1.2600 handle towards its next hurdle near 126.40-45 horizontal area.

Author

Haresh Menghani

FXStreet

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

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.