EUR/JPY trades flat around 117.30, looks to trade

EUR/JPY looks consolidative today above the 117.00 handle.
Markets’ focus remains on the US-China trade front.
German GfK Consumer Climate came in at 9.7 in September.

Pablo Piovano FXStreet

The generalized sidelined theme in the broader markets leaves EUR/JPY to trade within an unusual narrow range around the 117.30 region.

EUR/JPY attention to trade, data

The cross is meandering the lower end of the recent range following yesterday’s moderate drop and is looking to put further distance from Monday’s new 2019 lows in the mid-116.00s.

The mood in the global markets appears to have entered an impasse mode amidst no progress in the US-China trade front and somewhat rising concerns on the inversion of the US 2y-10y yield curve.

In the docket, earlier in the session German Consumer Climate tracked by GfK came in a tad above estimates at 9.7 for the month of September, matching August’s reading. In the broader Euroland, M3 Money Supply expanded at an annualized 5.2%, surpassing forecasts.

EUR/JPY relevant levels

At the moment the cross is advancing 0.06% at 117.31 and faces the next up barrier at 118.31 (21-day SMA) followed by 119.87 (high Aug.6) and then 120.34 (55-day SMA). On the other hand, a breakdown of 116.56 (2019 low Aug.26) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016).

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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