- EUR/JPY tumbles to fresh 4-week lows near 117.20.
- Declining US yields pushes JPY higher.
- EMU Producer Prices disappointed once again.
The increasing demand for the Japanese safe haven keeps putting EUR/JPY under further downside pressure, now forcing it to recede to the low-117.00s, or multi-week lows.
EUR/JP now focused on US data, yields
The cross is trading in the negative territory since Monday. The down move has picked up pace after the miserable print from the US ISM manufacturing re-ignited concerns that a US recession could be in the offing in 2020/21.
Yields of the US 10-year note reacted with a sharp decline, boosting at the same time the appetite for JPY and thus dragging the cross lower.
On the EUR side, the ongoing recovery remains unable to trigger a squeeze higher, let alone a reversion in the trend.
On the docket, EMU’s Retail Sales came in mixed during August, while Producer Prices in the region contracted more than initially estimated.
Moving forward, all the attention will be on the US ISM Non-manufacturing, specially following Monday’s weak reading from the manufacturing gauge. On Friday, the main event will be the US monthly labour report for the month of September.
EUR/JPY relevant levels
At the moment the cross is retreating 0.11% at 117.32 and a breach of 117.24 (monthly low Oct.3) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3). On the flip side, the initial resistance aligns at 118.62 (55-day SMA) seconded by 120.01 (monthly high Sep.13) and then 120.15 (100-day SMA).
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
AUD/USD loses ground due to the absence of a hawkish RBA
The Australian Dollar has plunged following the Reserve Bank of Australia's decision to maintain its interest rate at 4.35% on Tuesday. Investors sentiment leaned toward a potentially more hawkish stance from the RBA, particularly after last week's inflation data surpassed expectations.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold price remains on the defensive on a firmer US Dollar
Gold price attracts some sellers on the firmer US Dollar during the Asian trading hours on Wednesday. The hawkish remarks from Federal Reserve officials dampen hopes for potential interest rate cuts in 2024 despite weaker-than-expected US employment reports in April.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
FTX has filed a consensus-based plan for its reorganization, coming almost two years after the now defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.