EUR/JPY looks firmer, rebounds to 128.50 ahead of FOMC

EUR/JPY partially reverses the recent pullback and retakes 128.50.
US 10-year yields extend the consolidative mood pre-FOMC.
Markets’ attention will be on the Fed’s tapering timetable, dots plot.

Pablo Piovano FXStreet

EUR/JPY finally seems to have regained the smile and now extends the bounce off recent lows near 128.00

EUR/JPY now looks to the Fed

After six consecutive sessions in the negative territory, some respite for EUR/JPY finally came on Wednesday and after bottoming out in the 128.00 zone.

The selling bias in the Japanese yen helps the cross to rebound from lows in the sub-128.00 area to the vicinity of 128.60 midweek.

The steady activity in US yields plus the unchanged bias from the BoJ at its meeting earlier in the session favour the depreciation of the Japanese currency, which in turn morphs into further gains in the cross.

Later in the session, the yen could face bouts of volatility considering the key FOMC event, where a potential tapering timetable and the updated “dots plot” are expected to be in the centre of the debate.

EUR/JPY relevant levels

So far, the cross is up 0.38% at 128.51 and a surpass of 129.58 (200-day SMA) would aim for a move to 130.00 (psychological level) and then 130.74 (monthly high Sep.3). On the downside, the next support comes at 127.93 (monthly low Sep.22) followed by 125.85 (200-week SMA) and finally 125.08 (2021 low Jan.18).

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.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro flirts with daily tops near 1.1530

EUR/USD has regained momentum after Monday’s pullback, advancing past the 1.1500 barrier to reach daily highs on turnaround Tuesday. Hopes for a diplomatic solution to the Middle East crisis continue to weigh on the US Dollar, alongside disheartening June US JOLTs figures.

Ripple Price Forecast: XRP extends technical weakness despite whales increasing exposure

Ripple (XRP) declines for a second day in a row, trading around $1.07 at the time of writing on Tuesday. The remittance token has continued to sustain a bearish outlook, aligning with the broader cryptocurrency market.

Volatility waits for fresh catalyst ahead of US-Iran 'talks'

EU mid-market update: SpaceX and AMD to report after the close; Volatility waits for fresh catalyst ahead of US-Iran 'talks'. - Middle East and energy drives sentiment still.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.