- EUR/JPY fades bounce off intraday low amid subdued session.
- Market sentiment dwindles as coronavirus woes jostle with economic optimism at Europe.
- Japan extended covid emergency in Tokyo, up for issuing vaccine passports.
- German inflation data, virus updates are crucial to follow for fresh impulse.
EUR/JPY eases below 131.00, down 0.05% around 130.85, amid the initial hour of Tokyo open on Tuesday. The pair rose during the last two days before easing from the weekly top of late. The reason could be traced to the coronavirus (COVID-19) concerns as well as a lack of major directives in Asia.
Although the Japanese government is ready to allocate free-of-cost vaccine passports and a “no-spectator Olympics”, the covid woes in the Asian major are a matter of worry. The same push the policymakers to extend Tokyo’s virus-led emergency as prefectural governors push for more vaccinations and criticize holding sports carnival amid the pandemic at home.
Elsewhere, Australia registers the most covid numbers since September whereas Malaysia, Indonesia and Thailand are among the worst-hit countries from the deadly virus of late.
On the contrary, the Euro’s (EUR) comparative strength, on the back of the hawkish ECB and upbeat fundamentals, favors EUR/JPY buyers. On Monday, ECB President Christine Lagarde said, “People should be prepared for the next ECB meeting to provide new guidance on the path forward for policy over the coming year.”
Amid these plays, S&P 500 Futures struggle around record top while Japan’s Nikkei 225 adds 0.65% by the press time.
Moving on, Germany’s headline inflation report for June, Harmonized Index of Consumer Prices, expected to confirm 2.1% YoY preliminary forecasts, will be important to watch amid the ECB’s tapering concerns. However, the covid updates become crucial for near-term direction. Above all, this week’s Bank of Japan (BOJ) monetary policy meeting keeps USD/JPY traders on edge.
Read: BOJ Preview: Yen has room to (temporarily) fall on downgraded outlook, worrying virus state
Despite bouncing off the late April lows during the last week, EUR/JPY bulls need to cross the 100-DMA level of 131.15 to challenge the monthly resistance line near 131.60. Meanwhile, a daily closing below the 130.00 threshold will recall the bears.
Additional important levels
|Today last price||130.91|
|Today Daily Change||-0.03|
|Today Daily Change %||-0.02%|
|Today daily open||130.94|
|Previous Daily High||130.99|
|Previous Daily Low||130.45|
|Previous Weekly High||131.87|
|Previous Weekly Low||129.62|
|Previous Monthly High||134.13|
|Previous Monthly Low||130.04|
|Daily Fibonacci 38.2%||130.78|
|Daily Fibonacci 61.8%||130.66|
|Daily Pivot Point S1||130.6|
|Daily Pivot Point S2||130.26|
|Daily Pivot Point S3||130.06|
|Daily Pivot Point R1||131.13|
|Daily Pivot Point R2||131.33|
|Daily Pivot Point R3||131.67|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD stays below 1.0900 as Q1 comes to an end
EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains
GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike
Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar
With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.