- EUR/JPY moves to the 119.00 neighbourhood on Thursday.
- EMU Industrial Production disappoints once again.
- ECB event next of relevance. US releases its CPI figures.
The rebound in the demand for the single currency has given some extra legs to EUR/JPY, lifting it to the 119.00 area and above.
EUR/JPY in 4-week tops
The recent improvement in the risk-associated complex has been adding selling pressure to the Japanese safe haven and bolstering the up move in the cross for the second week in a row, also helped by the somewhat steady mood in EUR.
The moderate rebound in US yields has also propped up the renewed selling bias in JPY, which clinched fresh lows vs. both EUR and USD.
Later in the session, the recovery in the cross will be surely put to the test in light of the ECB event. It is worth recalling that the central bank is expected to unveil a package of looser monetary conditions, which could include interest rate cuts, a tiered deposit rate scheme and even another wave of ‘quantitative easing’ (QE).
Earlier in the day, German final CPI figures for the month of August matched the preliminary prints (-0.2% MoM, 1.4% YoY), while July’s Industrial Production in the broader Euroland missed consensus and contracted more than forecasted.
EUR/JPY relevant levels
At the moment the cross is advancing 0.19% at 118.93 and faces the next up barrier at 119.12 (monthly high Sep.12) seconded by 119.58 (high Aug.13) and then 119.87 (high Aug.6). On the other hand, a breach of 117.77 (21-day SMA) would expose 115.86 (2019 low Sep.3) ahead of 114.85 (2017 low Apr.17).
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.