- EUR/JPY manages to reverse the initial drop to 129.60.
- Lower US yields weigh on the dollar and pushes the yen higher.
- EMU, German flash manufacturing PMIs surprised to the upside.
Despite the increasing buying pressure around the Japanese yen, EUR/JPY manages well to keep daily gains near the key 130.00 hurdle so far on Friday.
EUR/JPY bounces off 2-week lows
After bottoming out in new multi-day lows in the 129.60/55 band, EUR/JPY regained some buying interest in response to the strong advance in the single currency, which appears in turn sustained by the moderate sell-off in the greenback.
Indeed, US 10-year yields navigate levels last seen in mid-March around 1.53%, putting the buck under extra downside pressure and sponsoring fresh inflows into the safe haven JPY.
The euro, in the meantime, regains the smile following the steady ECB on Thursday and the auspicious assessment of the economy in the region by the Governing Council.
In the euro docket, flash Manufacturing and Services PMIs for the month of April came in above estimates in France, Germany and the broader Euroland. Across the pond, advanced PMIs are also due along with the March’s New Home Sales.
EUR/JPY relevant levels
At the moment the cross is up 0.11% at 129.84 and a surpass of 130.97 (2021 high Apr.20) would pave the way for a test of 131.00 (psychological level) and then 131.98 (2018 high Jul.17). On the downside, immediate contention is located at 129.37 (50-day SMA) followed by 128.29 (weekly low Mar.24) and finally 127.85 (100-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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.