EUR/JPY reverses a dip to 3-month lows, finds support ahead of mid-119.00s

Reports on the ECB strategy review exerted some downward pressure on the euro.
The risk-on mood weighed on the JPY’s safe-haven status and helped limit losses.

Haresh Menghani FXStreet

The EUR/JPY cross dropped to near three-month lows in the last hour, albeit found some support ahead of mid-119.00s and quickly recovered around 30 pips thereafter.

The cross failed to capitalize on its intraday uptick to the key 120.00 psychological mark, rather met with some fresh supply and drifted into the negative territory for the fifth consecutive session.

The already weaker sentiment surrounding the shared currency deteriorated further after Reuters reported that the ECB's monetary policy review is unlikely to fix the house price inflation dilemma.

The exclusion of house prices while determining the inflation target led to expectations that it might result in lower consumer inflation and fueled speculations of lower interest rates for longer.

Meanwhile, the prevalent risk-on mood continued undermining the Japanese yen's perceived safe-haven demand and seemed to be the only factor lending some support, at least for the time being.

The cross might now be headed back towards the top end of its daily trading range. However, it remains to be seen if bulls will be able to capitalize on the attempted intraday recovery move.

Technical levels to watch

EUR/JPY

Overview
Today last price	119.76
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	119.77

Trends
Daily SMA20	121.02
Daily SMA50	121.22
Daily SMA100	120.49
Daily SMA200	120.53

Levels
Previous Daily High	120.34
Previous Daily Low	119.68
Previous Weekly High	121.15
Previous Weekly Low	119.92
Previous Monthly High	122.88
Previous Monthly Low	119.78
Daily Fibonacci 38.2%	119.93
Daily Fibonacci 61.8%	120.09
Daily Pivot Point S1	119.52
Daily Pivot Point S2	119.27
Daily Pivot Point S3	118.86
Daily Pivot Point R1	120.18
Daily Pivot Point R2	120.59
Daily Pivot Point R3	120.84

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.