EUR/JPY has once again baulked, awaiting next key risk events

EUR/JPY has once again baulked ahead of the 55 day ma.
Merkel appears to have regained control over her junior coalition.

Ross J Burland FXStreet

EUR/JPY's upside failed at the 50-D SMA where it has been capped by since the 13th May. EUR/JPY is responding to political developments and risk whereby Us stocks are sinking into thin trade ahead of the US holidays.

German political issues have dragged on the cross of late but Chancellor Merkel appears to have regained control over her junior coalition partners which should ease new election worries offering scope for a break of the double top highs depending on the performance of USD/JPY.

Risks events coming up

However, with the North American markets closing down for holidays, price action is likely to remain subdued before further key data is released fro the US whereby the dollar will dictate the trajectory in the nearer- eyes on nonfarm payrolls. Another likely candidate for direction in the yen will possibly stem from whatever retaliation the Chinese will pursue with respect to US tariffs kicking in, scheduled for the 6th July.

EUR/JPY levels

Analysts a Commerzbank explained that EUR/JPY has once again baulked ahead of the 55 day ma at 129.66 and the 2018 downtrend line at 129.95: "The risk remains that we will see failure and a slide back to 125.75, which is the last defence for the 124.62 recent low. Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.