EUR/JPY supported above 5-DMA, despite risk-aversion

Dhwani Mehta FXStreet

The EUR/JPY cross remains on the offers amid broad yen strength, as risk-off remains in full swings, following reports of the North Korean missiles launch.

EUR/JPY fails to hold above 121 handle

The EUR/JPY pair now drops -0.35% to trade at 120.76, hovering with a striking distance of 120.68 struck last hour. The cross remains heavy as weakness seen in both the EUR/USD and USD/JPY pair in response to risk-averse market condition, with investors looking to protect their capital.

Also, resurgent US dollar demand across the board fuels renewed selling pressure behind EUR/USD, eventually collaborating to the downside in EUR/JPY. Looking ahead, the spot eyes the Eurozone retail PMI and Sentix investor confidence data to lift the sentiment around the EUR.

EUR/JPY: Technical Levels

Higher side: 121.03/19 (50-DMA/ daily high), 121.40/50 (Classic R3/ psychological levels)

Lower side: 120.58/47 (5-DMA/ Classic R3), 120/119.96 (zero figure/ Mar 3 low)

1. R3 121.57
2. R2 121.37
3. R1 121.13
PP 120.93
1. S1 120.68
2. S2 120.48
3. S3 120.24

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.