EUR/JPY looks consolidative around the 123.50 area ahead of data

EUR/JPY retraces Monday’s decent advance and returns to 123.50.
The cross met decent resistance in the 124.00 region so far this week.
US Consumer Confidence takes centre stage ahead of FOMC event.

Pablo Piovano FXStreet

Following another failure to re-test/surpass the 124.00 level, EUR/JPY triggered a correction lower to the current mid-123.00s at the time of writing.

EUR/JPY looks to risk trends, data, pandemic

EUR/JPY is giving away part of the gains recorded at the beginning of the week, returning to the 123.50 area after being rejected once again from the vicinity of the 124.00 yardstick.

The cross remains under pressure on the back of the continuation of the buying interest surrounding the Japanese safe haven and the corrective downside now underway in the European currency.

In the meantime, investors continue to gauge the ongoing economic recovery vs. the unremitting advance of the pandemic, while latest news regarding a potential vaccine from biotech Moderna (NASDAQ: MRNA) seems to have been underpinning the sentiment in the risk universe.

Later in the session, the US Consumer Confidence measured by the Conference Board will be on top of the agenda amidst rising cautiousness ahead of the FOMC event due on Wednesday.

EUR/JPY relevant levels

At the moment the cross is losing 0.42% at 123.30 and a drop below 122.87 (monthly high Jan.16) would expose 121.14 (monthly high Mar.25) and then 119.94 (200-day SMA). On the flip side, the next up barrier is located at 124.43 (2020 high Jun.5) followed by 126.80 (monthly high Apr.17 2019) and finally 127.50 (2019 high Mar.1).

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.

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