EUR/JPY looks firmer and reaches 130.00, 3-day highs

  • EUR/JPY adds to Tuesday’s gains around the 130.00 mark.
  • US yields recover and sustain the JPY-selling mood.
  • Markets’ attention remains on the ECB event on Thursday.

The selling pressure in the Japanese currency keeps the recovery in EUR/JPY well and sound on Wednesday.

EUR/JPY bounces off the mid-128.00s

After a brief drop to new 4-month lows near 128.50 on Tuesday, EUR/JPY managed to regain buying interest on the back of the moderate recovery in US yields and the eventual selling bias in the Japanese yen.

Indeed, US 10-year yields regain the smile and the 1.28% region after bottoming out in levels last seen back in February around 1.13% on Tuesday.

The dollar, in the meantime, shows some volatility and fuels the rebound in the single currency ahead of the key ECB event on Thursday.

On the latter, consensus among traders expects the central bank to keep or even enhance the current mega-accommodative stance of the monetary conditions in the euro area.

EUR/JPY relevant levels

So far, the cross is gaining 0.46% at 129.95 and a surpass of 130.01 (weekly high Jul.21) would expose 131.08 (weekly high Jul.13) and then 132.43 (monthly high Jul.1). On the downside, immediate support is located at 128.59 (monthly low Jul.20) seconded by 128.54 (61.8% Fibo of the January-June rally) and finally 128.37 (200-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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Portrays bearish set-up on D1 below 1.1900

EUR/USD edges lower around 1.1870 amid a quiet start to the week’s Asian session trading on Monday. The major currency pair snapped a four-day uptrend on Friday, posting the bearish spinning top candlestick.


GBP/USD: Bears brace for 200-SMA retest

GBP/USD begins the trading week on lower ground near 1.3900. The cable pair broke a short-term rising channel during the late Friday and teased bears amid a downward sloping Momentum line. The selling currently aims to retest the 200-SMA support near 1.3835, a break of which could highlight the 1.3770 area comprising multiple levels marked last week.


Gold bulls hesitate as focus shift to NFP

After closing the previous week in the negative territory, gold stayed on the back foot on Monday and dropped below $1,800. However, the subdued market action ahead of key macroeconomic events allowed the precious metal to stay in a consolidation phase on Tuesday.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

Challenging week ahead

Three macro considerations are shaping the investment climate: the evolution of the virus and the response, the timeframe of the Fed's tapering, and China's broad regulatory crackdown. Beijing's new policy initiatives are broader and quicker than generally anticipated.

Read more