EUR/JPY flat around the 118.00 handle ahead of Jackson Hole

EUR/JPY keeps the trade above 118.00 the figure so far today.
JPY-selling picks up pace on rising US yields.
Jackson Hole event coming up next on the docket.

Pablo Piovano FXStreet

EUR/JPY is alternating gains with losses in the 118.00 neighbourhood in the second half of the week.

EUR/JPY looks to data, Jackson Hole

The cross is prolonging the sideline theme around the 118.00 mark against the backdrop of the offered bias surrounding the Japanese safe haven and renewed weakness in the European currency.

In fact, EUR could not sustain the post-PMIs optimism and it has quickly reversed the upbeat momentum, while yields of the key US 10-year note are flirting with weekly highs in the boundaries of 1.62%.

Data wise earlier today, flash PMIs in core Euroland are seen reversing the prevailing downtrend in August, while the ECB minutes noted the economic slowdown could be here more than expected. In Japan, key inflation figures are due tomorrow and Fed’s Chief Powell will speak at Jackson Hole Symposium also on Friday.

EUR/JPY relevant levels

At the moment the cross is down 0.07% at 118.10 and a breach of 117.51 (2019 low Aug.12) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016). On the upside, the next hurdle emerges at 119.01 (21-day SMA) followed by 119.87 (high Aug.6) and then 120.72 (55-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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