EUR/JPY keeps the bid bias above 129.00

EUR/JPY adds to recent gains above 129.00 on Thursday.
The selling mood in the Japanese yen sustains the cross.
US Initial Claims, Powell next of relevance in the docket.

Pablo Piovano FXStreet

The continuation of the selling bias in the Japanese yen lends extra legs to the EUR/JPY beyond 129.00 the figure in the second half of the week.

EUR/JPY focused on risk trends, data

Investors’ concerns over potential inflation in the next months, exclusively stemming from the planned increase in US fiscal stimulus, continue to lend support to the dollar and therefore hurt the sentiment surrounding the risk universe and sponsor further outflows from the Japanese yen.

Indeed, yields of the US 10-year benchmark managed to regain the 1.50% level and above in past sessions, area last visited more than a year ago.

In the meantime, the reflation/vaccine trade now seems to be an extra factor sustaining the recovery in the buck in detriment of the demand for riskier assets.

In the US docket, Initial Claims rose by 745K WoW during last week, bettering expectations. Additionally, Unit Labor Costs rose 6.0% inter-quarter in Q4, and Nonfarm Productivity shrunk 4.2% QoQ during the same period. Earlier, Challenger Job Cuts dropped to 34.531K during last month (from 79.552K).

EUR/JPY relevant levels

At the moment the cross is gaining 0.16% at 129.30 and faces the next resistance at 129.87 (2021 high Feb.24) followed by 130.00 (psychological level) and then 130.14 (monthly high Nov.7 2018). On the other hand, a drop below 128.18 (weekly/monthly high Mar.2) would aim for 127.30 (low Feb.17) and finally 126.95 (50-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.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

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.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

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.