EUR/JPY retreats from multi-day peaks, still above 125.00

  • The cross moved higher to the mid-125.00s, where lost momentum.
  • The selling bias appears to have returned to EUR.
  • EMU Industrial Production contracted more than expected in December.

After climbing as high as the 125.50/55 band during early trade, EUR/JPY has sparked some correction and is now navigating the 125.20 area.

EUR/JPY bolstered by JPY-weakness

The improved sentiment in the risk-on complex led by rising hopes of a US-China trade deal has been sponsoring the up move in the cross in the first half of the week, partially reverting last week’s moderate sell-off.

That said, the preference for riskier assets has exacerbated the selling bias in the Japanese safe haven, collaborating with the up move to the area beyond 125.00 the figure, where it has run out of steam on the back of renewed EUR weakness.

Previously, Industrial Production in the euro bloc contracted more than expected at a monthly 0.9% in December and 4.2% from a year earlier.

Early on Thursday, JPY is expected to be in centre stage in light of the release of preliminary GDP figures during Q4 2018.

EUR/JPY relevant levels

At the moment the cross is gaining 0.10% at 125.22 and a surpass of 125.53 (high Feb.13) would expose 125.94 (high Feb.4) and then 126.00 (55-day SMA). On the downside, immediate contention appears at 124.96 (10-day SMA) followed by 124.79 (21-day SMA) and then 123.78 (low Jan.25).

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

EUR/USD slides on USD strength, weak German data

EUR/USD is trading below 1.1350. The German IFO Business Climate slightly missed expectations with 98.5 points. The USD is gaining ground despite progress in US-Chinese talks.

EUR/USD News

GBP/USD recaptures 1.3000 amid Brexit uncertainty, dollar swings

GBP/USD is trading above 1.3000 once again, as the USD loses ground now. Reports about a potential extension of Brexit are circulating but no progress has been made. Trump meets China's Vice PM Liu later.

GBP/USD News