EUR/JPY moves higher and tests 124.80, multi-session tops

EUR/JPY flirts with the 55-day SMA around 124.70/80.
Risk-on sentiment weighs on the safe haven Yen.
Stimulus rumours keep feeding the risk-associated galaxy.

Pablo Piovano FXStreet

The persistent upbeat mood surrounding the riskier assets boosts the strong advance in EUR/JPY to the proximity of the key barrier at 125.00 the figure.

EUR/JPY focuses on risk trends, data

EUR/JPY is up for the third consecutive session on turnaround Tuesday and extends further the rebound from last week’s lows in the 123.00 neighbourhood, where some solid contention seems to have emerged so far.

In fact, market chatter around a package of fiscal stimulus keeps sustaining the sentiment among investors and sparks further selling pressure in the Japanese yen, particularly after Treasury Secretary S.Mnuchin and House Speaker N.Pelosi said talks could resume at some point later on Tuesday.

Data wise in the euro bloc, August’s Current Account surplus narrowed to €21.8 billion in August (from €25.5 billion). Later in the NA session, Building Permits and Housing Starts will take centre stage along with speeches by FOMC’s R.Quarles and C.Evans.

EUR/JPY relevant levels

At the moment the cross is gaining 0.59% at 124.79 and faces the next barrier at 125.08 (monthly high Oct.9) seconded by 126.46 (weekly high Sep.10) and then 127.07 (2020 high Sep.1). On the downside, a move below 123.48 (100-day SMA) would aim for 123.01 (monthly low Oct.15) and finally 122.37 (monthly low Sep.28).

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.

EUR/USD flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold posts modest gains above $5,050 as US-Iran tensions persist despite strong labor data

Gold price trades in positive territory near $5,060 during the early Asian session on Thursday. The precious metal edges higher despite stronger-than-expected US employment data. The release of the US Consumer Price Index inflation report will take center stage later on Friday.

Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.