EUR/JPY gains momentum, hits 126.00 and holds in bullish pattern

Stronger Euro favors rebound in EUR/JPY from key support.
On a quiet session, pair holds bullish tone, testing 126.00.

Matías Salord FXStreet

The EUR/JPY pair is up on Monday, recovering from last week losses. The Euro today is among the top performers, improving after falling sharply last week on the back of weaker Eurozone economic data.

A quiet day, mixed results

The Euro is rising across the board while the yen remains flat, boosting modestly the EUR/JPY pair on a low volatility session. It climbed to 125.98, reaching the highest since Thursday. It is bouncing from last week lows. The move to the upside could be the beginning of a new trip to 126.80.

For the Euro to move higher, EZ data should not disappoint and risk sentiment remain positive. In Japan, the key event will be the Bank of Japan meeting on Thursday. Also, US data could have an impact on the pair. The relevant report ahead is on Friday with the first estimate of Q1 GDP.

Ascendant channel intact

The retreat from levels near 127.00 found support so far around 125.60, a horizontal level and also on top of an uptrend line from March lows. Price continues to move in the channel with a bullish tone. Still close to the key support but it is bouncing. If it remains in the pattern above 126.00 it will likely rise to test the next resistance at 126.20. A consolidation on top would clear the way for 126.50.

To the downside, a break under 125.60 would be a clear negative signal for the Euro and would to further losses, potentially targeting 124.90.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD holds above 1.3500, struggles to gain traction

GBP/USD rebound from session lows but stays below 1.3550 on Thursday. The cautious market stance helps the US Dollar stay resilient against its rivals and makes it difficult for the pair gather recovery momentum. Investors await headlines that will come out of the US-Iran nuclear talks.

Gold clings to small gains near $5,200 ahead of US-Iran talks

Gold trades marginally higher on the day above $5,150 on Thursday as investors refrain from taking large positions. The US and Iran will hold the next round of nuclear talks in Geneva on Thursday, outcome of which could have significant implications for risk perception.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.