- EUR/JPY’s upside momentum loses the grip ahead of 123.00.
- EU Leaders clinched deal on recovery fund worth €750 billion.
- Markets’ attention remains on the pandemic vs. recovery theme.
The neutral/bearish note around the singl currency has prompted some cautiousness in EUR/JPY in the boundaries of the 123.00 neighbourhood on turnaround Tuesday.
EUR/JPY targets the 2020 peaks above 124.00
After bottoming out in the 119.30 region on June 22, EUR/JPY has sparked a sharp correction higher, advancing in four out of the last five weeks and re-shifting its focus to the YTD highs beyond 124.00 the figure (June 5).
The relentless upside has been fuelled by the strong improvement in the risk-associated universe, as market participants continue to gauge the progress in the economic recovery vs. the unremitting advance of the coronavirus pandemic. However, latest news citing scientists appear to be closer to develop a COVID-19 vaccine have also collaborated with the upbeat mood among traders.
Nothing worth mentioning data-wise on Thursday, while investors continue to digest the recent deal between EU leaders on a recovery fund worth €750 billion (€390 billion grants and €360 billion in loans).
EUR/JPY relevant levels
At the moment the cross is retreating 0.03% at 122.73 and a drop below 121.14 (monthly high Mar.25) would expose 119.85 (200-day SMA) and then 119.31 (monthly low Jun.22). On the upside, the next up barrier is located at 123.02 (monthly high Dec.13 2019) seconded by 124.43 (2020 high Jun.5) and finally 126.80 (monthly high Apr.17 2019).
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
USD/JPY holds above 155.50 ahead of BoJ policy announcement
USD/JPY is trading tightly above 155.50, off multi-year highs ahead of the BoJ policy announcement. The Yen draws support from higher Japanese bond yields even as the Tokyo CPI inflation cooled more than expected.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.