EUR/JPY trades within a tight range below 121.00

EUR/JPY keeps the rangebound theme unchanged this week.
The area in the mid-121.00s keeps capping the upside.
Markets’ focus stay on the US-China trade front.

Pablo Piovano FXStreet

Alternating trends in both the single currency and the Japanese yen are motivating EUR/JPY to keep the sideline trade below the 121.00 handle for the time being.

EUR/JPY looks to trade for direction

The cross is prolonging the sideline theme between the 120.30 region and the 121.50 area that has been prevailing in the last couple of weeks.

Positive headlines from the US-China trade front have been collaborating with the fresh selling momentum in the Japanese safe haven, although the renewed downside pressure around the euro has been playing against the continuation of the uptrend in the cross.

In the euro docket, German Factory Orders expanded more than expected during September, while final Services PMIs in core Euroland remained above the 50.0 threshold in October. In addition, Retail Sales in the broader euro area also came in on the strong side.

EUR/JPY relevant levels

At the moment the cross is losing 0.05% at 120.81 and a breach of 120.28 (low Oct.31) would expose 119.64 (100-day SMA) and finally 118.93 (55-day SMA). On the other hand, the next up barrier aligns at 121.47 (monthly high Oct.31) seconded by 122.02 (200-day SMA) and then 123.35 (monthly high Jul.1).

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 clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.