EUR/JPY recedes from YTD peaks, looks supported around 132.00

EUR/JPY records new 2021 highs, retreats afterwards.
US yields come under pressure and drag the dollar lower.
Initial Claims rose by 473K, Producer Prices rose 0.6% MoM.

Pablo Piovano FXStreet

After recording new YTD highs in the 132.70/75 band earlier in the session, EUR/JPY came under some selling pressure on Thursday.

EUR/JPY stays supported near 132.00

EUR/JPY extends the weekly advance well past the 132.00 yardstick and visits the area last seen in September 2018 beyond 132.70.

The strong pick-up in US yields re-ignited the selling bias around the Japanese yen, all rendering in further upside traction in EUR/JPY.

Indeed, US inflation figures for the month of April came in stronger than initially estimated, fueling further the market chatter regarding higher inflation in the next months and lifting US 10-year yields back to the 1.70% area.

Nothing scheduled in the euro docket on Thursday left all the attention to the US calendar: Initial Claims rose by 473K during last week, headline Producer Prices gained 0.6% MoM in April and 6.2% from a year earlier, while Core prices rose 0.7% inter-month and 4.7% vs. April 2020.

EUR/JPY relevant levels

So far, the cross is gaining 0.10% at 132.43 and a surpass of 132.73 (2021 high May 12) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21 2018). On the flip side, immediate contention is located at 130.98 (weekly/monthly low May 5) seconded by 130.31 (50-day SMA) and finally 129.58 (weekly low Apr.23).

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 eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.