EUR/JPY hits weekly high above 118.00 but fails to hold on top
- EUR/JPY holds a bullish tone, unable so far to make a clear run above 118.00.
- Volatility across financial markets remain low, even after FOMC minutes.
The EUR/JPY pair is hovering around 118.00 consolidating daily gains but still, the bounce from the one-month lows remains limited. The bias ahead of the Asian session point to the upside.
During the American session, EUR/JPY peaked at 118.08, the highest level since October 1. Then pulled back and as of writing trades at 117.98, up 70 pips for the day. The Euro is holding above yesterday’s top, with technical indicators favoring the upside. But it needs to risk back and hold above 118.00 to clear the way to more gains.
The move to the upside on Wednesday was driven by a weaker Japanese Yen. An improvement in risk sentiment and also higher US yields pushed EUR/JPY to the upside. The pair held near the highs following the FOMC minutes.
Fed’s document showed officials were worried about trade war consequences while many officials cited inflation in justifying the interest rate cut that was decided on the September meeting. US yields held near daily highs after the minutes. Market participants mostly ignored the minutes.
Ahead of the Asian session, the Yen is facing some pressure while the Euro remains flat. On Thursday, in Japan, inflation data is due while later the European Central Bank will release the minutes from its latest meeting.
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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.
