EUR/JPY retreats from tops near 126.60 on US-China headlines

The cross eases ground following tops around 126.60.
EUR accelerates its losses on US-China headlines.
Brexit vote next of relevance later in the day.

Pablo Piovano FXStreet

The offered bias around the single currency is now forcing EUR/JPY to retreat from daily highs in the vicinity of 126.60.

EUR/JPY weaker on US-China news

The European currency intensified the daily correction lower after rumours noted the postponement of the Trump-Xi meeting that was originally expected at some point in late March.

However, the persistent weakness around the Japanese safe haven is poised to limit occasional pullbacks in the cross, at least in the near term.

Later in the European evening, all eyes will be upon the House of Commons once again, where MPs will vote on a potential extension of Article 50 following Tuesday’s rejection of May’s deal and yesterday’s defeat of the ‘no deal’ motion.

EUR/JPY relevant levels

At the moment the cross is gaining 0.23% at 126.18 facing the next up barrier at 126.56 (high Mar.14) seconded by 127.50 (2019 high Mar.1) and finally 128.04 (200-day SMA). On the other hand, a breach of 125.74 (21-day SMA) would aim for 124.27 (low Mar.8) and then 123.39 (low Jan.15).

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.

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