- EUR/JPY higher in overbought territory.
- Euro holds gains above H&S neckline vs the greenback.
EUR/JPY is finding fresh legs as the NY session progresses. Despite the recent drop in the benchmark indices on Wall Street, currently, EUR/JPY is trading at 133.57, up 0.77% on the day, having posted a daily high at 133.68 and low at 132.48.
USD/JPY remains in red near mid-113s as US stocks falter
The euro is on fire and the greenback has suffered a blowout of support and in testing below the 94 handle for the first time since October's business. EUR/USD is above the neckline support and testing fresh highs for the session at 1.1774.
Time to fade EUR/JPY?
The eurozone's data was a driving force what with upbeat German flash Q3 GDP figures and EMU’s economic sentiment for the current month, (30.9 vs 29.3 expected), set the cross on fire as German bund yields firmed. The 10-year benchmark climbed above 0.43% recording at fresh 3-week highs overnight. However, the dollar is renowned for bouncing back and it may not take much to hurt the cross if Wall Street benchmarks continue to struggle, keeping the yen on the backfoot making for a fading opportunity below 133.80. Wall Street still has some work to do in the recovery attempt, despite the correction that is underway at the time of writing.
EUR/JPY levels
Meanwhile, the 100 SMA on the 4hr sticks is flat/bearish. The daily double top is also compelling. EUR/JPY is back above 133 the figure and analysts at Commerzbank explained that a move above the 134.58 November 2015 high would target the 2008-2017 resistance line at 140.90/141.00. To the downside, the 4-hr sticks hold the 200 and 100 SMA just below 132.80 in the 132.60's. The 4-hr indicators are pointing to a continuation of the upside with RSI above 70.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends losses on dovish remarks from ECB members, trades near 1.0780
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD trades sideways above 1.2600 amid quiet session
The GBP/USD pair trades sideways around 1.2622 during the early Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures Price Index will be released.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.