EUR/JPY hit fresh 6-week high above 131 in Asia

EUR/JPY rose to 131.04 in Asia - the highest level since Aug. 1.
The EUR strength is likely associated with Draghi's comments on inflation.
The anti-risk JPY could continue to slide on prospects of US-China trade talks.

Omkar Godbole FXStreet Contributor

Currently, the EUR/JPY is trading at 130.83, having clocked a six-week high of 131.04 earlier today.

The common currency picked up a strong bid in the early US session yesterday after ECB's Draghi expressed confidence that inflation could pick up towards the end of the year and rise gradually in the medium term, courtesy of rising domestic cost pressures.

Meanwhile, the renewed hopes of US-China trade talks and Turkey's massive rate hike pushed up global equities and weakened the demand for the anti-risk JPY, the net result being a significant rally in the EUR/JPY.

Looking forward, corrective pullbacks, if any, will likely be short-lived as the bull flag breakout witnessed earlier this week has turned the tide in favor of the bulls. More importantly, the JPY could continue to take a beating if the risk assets continue to cheer the easing in US-China trade tensions.

EUR/JPY Technical Levels

Resistance: 131.10 (200-day moving average), 131.38 (May 14 high), 131.99 (July 17 high)

Support: 130.35 (daily pivot), 130.00 (psychological level), 129.78 (upward sloping 50-hour moving average)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Oversold	Expanding
1H	Bullish	Overbought	Shrinking
4H	Bearish	Overbought	Expanding
1D	Bullish	Overbought	Shrinking
1W	Strongly Bearish	Neutral	Expanding
Updated Sep 14, 02:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

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.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.