EUR/JPY: Trade war, UK election favor risk-off with eyes on ECB

EUR/JPY slips from weekly high amid fresh risk aversion wave.
Challenges to the US-China trade relations, UK election heavy the risk tone.
German inflation, Eurozone Industrial Production will offer intermediate moves ahead of the ECB.

Anil Panchal FXStreet

EUR/JPY steps back from the weekly high to 120.82 on early Thursday. Fresh risk aversion seems to drag the quote ahead of the key events.

Trade stalemate between the United States (US) and China keeps global traders on the edge as Trump administration is firm about December 15 tariffs on China unless getting a phase-one by then. On the other hand, China keeps its head high and criticizes the US behavior while demanding cancellation of upcoming tariff to continue the trade talks. The latest headlines from Reuters suggest that the US President Donald Trump will meet his trade advisers today to decide on tariffs.

Elsewhere, the United Kingdom (UK) is heading for a general election starting from 07:00 GMT to 22:00 GMT on Thursday. Even if all the polls keep the ruling Conservative Party at the top, a clear majority in the parliament is in doubt and keeps investors worried.

The pair earlier benefited from the broad US dollar (USD) weakness and a resultant Euro (EUR) gains after the US Federal Reserve (Fed) Chairman Jerome Powell said that they would have to see significant, persistent move up in inflation to hike rates.

Moving on, monetary policy meeting by the European Central Bank (ECB) will be important as it will be the first appearance of Christine Lagarde as the President. The ECB isn’t expected to offer any monetary policy change but might reiterate the need for fiscal support.

Other than the benchmark events, German inflation and Eurozone Industrial Production are likely additionally burden on the market watchers.

Technical Analysis

Prices are gradually rising towards a 200-day Simple Moving Average (SMA) level of 121.36 unless providing a daily close below 50-day SMA level of 120.15.

additional important levels

Overview
Today last price	120.81
Today Daily Change	-9 pips
Today Daily Change %	-0.07%
Today daily open	120.9

Trends
Daily SMA20	120.33
Daily SMA50	120.13
Daily SMA100	119.31
Daily SMA200	121.39

Levels
Previous Daily High	120.94
Previous Daily Low	120.37
Previous Weekly High	121.02
Previous Weekly Low	120
Previous Monthly High	121.31
Previous Monthly Low	119.24
Daily Fibonacci 38.2%	120.72
Daily Fibonacci 61.8%	120.59
Daily Pivot Point S1	120.54
Daily Pivot Point S2	120.17
Daily Pivot Point S3	119.97
Daily Pivot Point R1	121.1
Daily Pivot Point R2	121.3
Daily Pivot Point R3	121.67

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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