EUR/JPY stays bid above 127.00, new YTD highs

EUR/JPY adds to recent gains above 127.00.
The sell-off in the Japanese yen sustains the upside.
US 10-year yields keeps the dollar well bid.

Pablo Piovano FXStreet

The selling bias around the Japanese yen eclipses the corrective downside in the single currency and motivates EUR/JPY to advance to fresh peaks in the 127.30 area on Thursday.

EUR/JPY faces the next target at 127.50

EUR/JPY advances for the fourth consecutive session on Thursday, extending the recent breakout of the multi-week consolidative theme above the key barrier at 127.00 the figure. That said, the door now appears open for a potential move to the 2019 highs in the mid-127.00s.

The rebound in yields of the key US 10-year reference beyond the psychological 1.0% mark lends extra support to the buck vs. the Japanese yen, which in turn sustains the leg higher in the cross.

In the data space, flash inflation figures in Euroland for the month of December showed the lack of traction in consumer prices remains well and sound for the time being. In the US data space, Initial Claims rose by 787K WoW while the ISM Non-Manufacturing will be released later in the NA session.

EUR/JPY relevant levels

At the moment the cross is gaining 0.11% at 127.09 and faces the next hurdle at 127.30 (2021 high Jan.7) followed by 127.50 (2019 high Mar.1) and then 129.25 (monthly high Dec.13 2018). On the downside, a drop below 126.37 (21-day SMA) would aim for 125.70 (low Dec.16 2020) and finally 128.80 (55-day SMA).

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.

EUR/USD struggles aroound 1.1800 as USD stabilizes

EUR/USD stays defensive around 1.1800 in the European session on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony fails to impress Euro bulls.

GBP/USD drops toward 1.3500 as USD finds fresh demand

GBP/USD falls back toward 1.3500 in the European session on Thursday, snapping its recovery momentum. The pair loses traction as the US Dollar finds fresh demand, as markets turn cautious ahead of the US-Iran nuclear talks. The US trade policy uncertainty also remains a drag on risk sentiment.

Gold clings to gains amid sustained safe-haven flows ahead of US-Iran talks

Gold sticks to its modest intraday gains through the first half of the European session on Thursday, with bulls still awaiting a sustained move and acceptance above the $5,200 mark before placing fresh bets.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.