EUR/JPY looks to snap 4-day rally, trades near 124.30

Disappointing sentiment data weighs on the euro.
Positive sentiment helps pair limit losses.

Eren Sengezer FXStreet

Following the flash-crash witnessed in FX markets last week, the EUR/JPY pair staged a decisive recovery and closed the previous four days in the positive territory. However, with dismal macroeconomic data releases weighing on the shared currency on Tuesday, the pair reversed its course and remains on track to finish the day in the red. As of writing, the pair was down 47 pips, or 0.37%, on the day at 124.29.

The monthly report published by the European Commission today revealed that the Economic Sentiment Indicator in December fell to 107.3 from 109.5 in November and fell short of the market estimate of 108.2. Moreover, the Industrial Confidence, Services Sentiment, and Business Climate indexes retreated more than expected as well while the Consumer Confidence index stayed unchanged at -6.2.

Despite the selling pressure surrounding the euro, however, the pair's losses stayed relatively limited with the improved sentiment not allowing the JPY to gather strength. Major European equity indexes closed the day with strong gains while Wall Street opened higher on Tuesday to reflect the risk-on mood.

Key technical levels

EUR/JPY

Overview:
    Today Last Price: 124.29
    Today Daily change: -47 pips
    Today Daily change %: -0.377%
    Today Daily Open: 124.76
Trends:
    Previous Daily SMA20: 126.48
    Previous Daily SMA50: 127.8
    Previous Daily SMA100: 128.87
    Previous Daily SMA200: 129.32
Levels:
    Previous Daily High: 124.81
    Previous Daily Low: 123.4
    Previous Weekly High: 127.07
    Previous Weekly Low: 118.84
    Previous Monthly High: 129.3
    Previous Monthly Low: 125.36
    Previous Daily Fibonacci 38.2%: 124.27
    Previous Daily Fibonacci 61.8%: 123.94
    Previous Daily Pivot Point S1: 123.84
    Previous Daily Pivot Point S2: 122.91
    Previous Daily Pivot Point S3: 122.43
    Previous Daily Pivot Point R1: 125.25
    Previous Daily Pivot Point R2: 125.73
    Previous Daily Pivot Point R3: 126.66

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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