EUR/JPY stages a minor recovery, retakes 120.00 mark

Haresh Menghani FXStreet

Following Friday's slump to multi-day lows, the EUR/JPY cross staged a minor recovery bounce on Monday and move back above 120.00 psychological mark.

Currently trading around 120.10-15 region, today's disappointing Japanese trade balance data, coupled with a slight improvement in investors' risk-appetite, which tends to dent the Japanese Yen's safe-haven demand, helped the cross to bounce of 119.75-70 support area. Adding to this, a modest recovery witnessed around the EUR/USD major further supported the pair's recovery back beyond 120.00 handle.

Looking at the technical picture, the cross on Friday confirmed a breakdown through 6-day old trading range and hence, any recovery attempts might get sold into near the trading range support break-point turned resistance near 120.25-30 region.

Technical levels to watch

A sustained recovery back above 120.25-30 resistance has the potential to lift the cross back towards 121.00 hurdle, which if cleared would negate any near-term bearish bias and pave way for continuation of the recovery move further towards 121.40-50 horizontal resistance.

On the flip side, decisive break below 119.75-70 support would confirm the break down and might drag the cross below Feb. monthly lows support near 119.50 region towards testing 100-day SMA support near 119.15-10 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 118.75

17% Bullish
83% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 117.55

25% Bullish
75% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 117.23

30% Bullish
60% Bearish
10% Sideways

Bias Bearish

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 looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.