- Euro recovery from 128.50 extends to the resistance area at 129.40.
- The yen loses ground as the US dollar picks up.
- EUR/JPY is testing the top of the last two days' trading range.
The euro has firmed up against the Japanese yen on Tuesday, regaining lost ground after hitting 128.50 low on Monday, to reach 129.35/40 resistance area.
The euro picks up against a softer yen
The common currency has taken advantage of yen weakness, with the USD/JPY bouncing up, fuelled by higher US Treasury bond yields and a moderate risk appetite that has weighed on the safe-haven JPY.
The benchmark US 10-year note has ticked up above the 1.5% mark for the first time in the last three trading days. This has fuelled demand for USD, pushing the Dollar Index from 93.65 lows back to levels past 94.00 for most of the day, although it has recently pulled back to 93.90 area.
On the macroeconomic docket, Eurozone services activity has been revised to 56.4 in September from the 56.3 preliminary reading in August although showing a certain slowdown in demand. Furthermore, Eurozone producer prices have continued increasing on the back of surging energy prices.
EUR/JPY remains trapped between 128.50 and 129.40
In a broader perspective, the pair is trading both sides of 129.00 following last week’s reversal from the 130.40 area. On the upside, immediate resistance lies at 129.40 (October 4 high,) above here, next targets are 130.00 and the area between 130.50 and 130.75 (September 3, 8, and 29 highs).
On the downside, immediate support lies at 128.50 (October 1 low) before 127.90/128.00 area (August 19, September 23 low) and then 127.30 (February 18 low).
Technical levels to watch
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
USD/JPY briefly recaptures 160.00, then pulls back sharply
Having briefly recaptured 160.00, USD/JPY pulls back sharply toward 159.00 on potential Japanese FX intervention risks. The Yen tumbles amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
AUD/USD extends gains above 0.6550 on risk flows, hawkish RBA expectations
AUD/USD extends gains above 0.6550 in the Asian session on Monday. The Aussie pair is underpinned by increased bets of an RBA rate hike at its May policy meeting after the previous week's hot Australian CPI data. Risk flows also power the pair's upside.
Gold stays weak below $2,350 amid risk-on mood, firmer USD
Gold price trades on a softer note below $2,350 early Monday. The recent US economic data showed that US inflationary pressures stayed firm, supporting the US Dollar at the expense of Gold price. The upbeat mood also adds to the weight on the bright metal.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.