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.

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).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD attempts recovery above 1.1950 as USD resumes decline

EUR/USD is attempting a recovery above 1.1950 ahead of the European open, as the US dollar’s rebound falters amid persistent weakness in the Treasury yields. Easing concerns over EU's covid vaccines rollout and dovish Fed expectations underpin the spot.


GBP/USD recaptures 1.3850 as UK’s optimism offsets USD bounce

GBP/USD rises above 1.3850, picking up fresh bids heading into the London open. The cheers the UK’s advantage of faster vaccinations and unlock guidelines to shrug off the US dollar’s bounce off late the lowest since late March.


XAU/USD buyers attack six-week-old resistance line around $1,780

Gold keeps recovery moves from intraday low to print mild gains, picks up bids off-late. Ascending resistance line from early March tests bulls. 50-day SMA, monthly support line could offer bounces in case of pullback, any further weakness will recall the bears.

Gold News

Bitcoin network hash rate drop may not have caused BTC price crash

China’s prominent regions for Bitcoin mining have suffered an electrical grid blackout, causing Bitcoin’s hash rate to decline. Bitcoin price crashed over the weekend, coinciding with the drop of the network’s hash rate.

Read more

S&P 500 Week Ahead: Banks beat the street, COIN booms as funds flow to ETFs

Equity markets continue to remain bolstered from all sides as the macro environment produces strong numbers, earnings continue to smash estimates and inflation concerns take a back seat. Earnings season switches from bank stocks to reopening plays.

Read more