- EUR/JPY hovers around the 121.00 neighbourhood on Wednesday.
- German flash inflation figures coming up next.
- The Fed is expected to reduce the FFTR by 25 bps later today.
EUR/JPY is trading within an unusual tight range in the 121.00 region following quite a volatile session in the single currency and a steady march in the Japanese safe haven.
EUR/JPY now looks to FOMC, BoJ
The cross is thus extending the sideline theme in the upper end of the recent range, trading at shouting distance from monthly highs in the 121.50 region.
In the meantime, there is no significant news on the US-China trade front following the ‘Phase One’ deal clinched earlier in the month and expected to be signed at some point in early November in Chile.
On the other key front, the UK will hold elections in December following Tuesday’s favourable vote in the House of Commons. In the same line, the House of Lords is expected to pass the elections bill later today.
In the docket, EUR posted no reaction despite the German labour market report came in on a weak note earlier in the day. Later, the key advanced inflation figures in Germany are expected to grab more attention.
In the European evening, the FOMC is expected to reduce the FFTR by 25 bps, although the focus of interest will be on Chief Powell’s press conference and the Committee’s views on the economic outlook and the forward guidance.
Early on Thursday, the BoJ meeting is expected to be a non-event, as investors expect Governor Kuroda to keep the ultra loose monetary stance unchanged once again.
EUR/JPY relevant levels
At the moment the cross is losing 0.03% at 120.96 and a breach of 119.68 (100-day SMA) would expose 118.67 (55-day SMA) and finally 117.07 (monthly low Oct.3/7). On the upside, the initial hurdle is located at 121.35 (monthly high Oct.17) seconded by 122.12 (200-day SMA) and then 123.35 (monthly high Jul.1).
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 hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.