EUR/JPY remains below resistance / the July low at 120.06


  • EUR/JPY travelled higher as risk appetite improved a touch.
  • EUR/USD rose from 1.1000 to 1.1075 while USD/JPY bopped about in the low 108s.

EUR/JPY travelled higher as risk appetite improved a touch and the Dollar sank, supporting the euro while the Yen also suffered supply. EUR/JPY is currently trading at 119.68 and is flat on the day having climbed from a low of 118.69. 

Overnight, EUR/USD rose from 1.1000 to 1.1075 while USD/JPY bopped about in the low 108s, having touched 108.37 in Asian trade, a fresh high since the 1 August Trump-China tariff tweet. As for data, the ZEW survey of Germany investor sentiment remained deeply negative in September, deteriorating further than forecast to -19.9, a low since May 2010, but the expectations index improved sharply, to -22.5 from -44.1.

Risk sentiment was on the edge but improved to a degree

Meanwhile, risk sentiment was on a the edge but improved to a degree, helping to support the cross. In Europe, the DAX fell just 0.1% but WTI eased to USD59.2bbl and later in the day, with respect to the Saudi risk, crude markets fell sharply as the Saudi energy minister was quoted as saying that “oil supply is fully back online”. 

Looking ahead, we have the Federal Open Market Committee meeting, although markets are fully priced for the decision where the Fed is expected to cut its Federal Funds rate 25bp to 1.75-2.0%.

"Along with the usual statement, this meeting will provide quarterly forecasts of GDP, inflation, the unemployment rate and the “dots” of FOMC members’ projection of the funds rate as at end-2019, 2020, 2021 and “longer term.” We will also hear from Fed chair Powell in his press conference,"

analysts at Westpac explained. 

EUR/JPY levels

Analysts at Commerzbank note that EUR/JPY is expected to short-term consolidate further below the July low at 120.06:

"Above it resistance can be seen between the June lows at 120.79/96 as well as at the 121.38 late July high. Minor support comes in at the 118.60 September 5 high. Support below the 117.55/52 August 12 and September 12 lows can be seen at the 116.58/115.87 recent lows."

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.

EUR/USD News

GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.

GBP/USD News

USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.

USD/JPY News

Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more

Forex MAJORS

Cryptocurrencies

Signatures