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.

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