EUR/JPY sticks to the rangebound trade above 130.00 ahead of Powell

EUR/JPY keeps the consolidative mood well in place.
The dollar and the Japanese yen look directionless.
Investors’ attention is expected to be on Powell’s speech.

Pablo Piovano FXStreet

EUR/JPY extends the multi-session consolidation theme, always above the key 130.00 yardstick, on Wednesday.

EUR/JPY looks to Powell, risk trends

EUR/JPY now exchanges gains with losses above the 130.00 hurdle amidst the generalized inconclusive price action in the global assets.

In fact, the greenback navigates within a tight range in the lower end of the recent range, while the steady activity in US yields motivates the Japanese yen to follow suit for the time being.

The cross, in the meantime, remains within the broader consolidation scheme prevailing since the beginning of the month, always above the 130.00 level and with the immediate target at YTD peaks near 130.70 (April 7).

Data wise in the euro area, February’s Industrial Production contracted 1.0% inter-month and 1.6% from a year earlier. In the US data space, the salient event will be the participation of Chief Powell at a discussion panel at the Economic Club of Washington.

Still on the Fed side, NY Fed J.Williams (permanent voter, centrist), FOMC’s R.Clarida (permanent voter, centrist) and Atlanta Fed R.Bostic (voter, centrist) are all due to speak later on Wednesday.

EUR/JPY relevant levels

At the moment the cross is losing 0.06% at 130.21 and a drop below 129.57 (low Apr.8) would expose 128.91 (50-day SMA) and finally 128.29 (weekly low Mar.24). On the other hand, the next hurdle emerges at 130.68 (2021 high Apr.7) seconded by 131.00 (psychological level) and then 131.98 (2018 high Jul.17).

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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