EUR/JPY: Trump’s speech and Japan data highlights 124.90

  • The EUR/JPY pair rose to the day’s high around 124.80 prior to the European market start on Tuesday.
  • Latest comments from the US President favoring a trade deal with China and weaker Japan data played their role in the increase.
  • Buyers await clearance of 124.90 to aim for 125.20 while 124.35 can act as nearby support.

The Japanese Yen (Yen) weakened against the Euro to near 124.80 ahead of European session starts on Tuesday. The JPY registered losses across the board on a risk-off move after the US President signaled brighter chances of the US-China trade deal. Adding to the sentiment, Japan’s tertiary industry activity index slipped behind market consensus. The pair watchers now eye Monday’s high around 124.90 as a trigger to further upside.

Risk sentiments across global markets improved after the US President Donald Trump said in a rally addressing supporters in Texas that “We are going to make great deals on trade.” He further added that “We don't want China to have a hard time”. Other than China, Mr. Trump also appeased concerns for North Korea by saying “`Hopefully' will do as well on second Kim meet as first.”

At the economic front, Japan’s December month tertiary industry activity index dropped past -0.1% market consensus to the -0.3% contraction.

With Trump’s U-turn from his latest remark of not meeting the Chinese President until the trade talk’s expiry, investors rush to riskier assets than the traditional safe haven JPY. The Japanese currency got additional weakness from the domestic activity data.

Looking forward, the European market open, developments on the Brexit and US-China trade talk could continue directing near-term moves of the pair.

EUR/JPY Technical Analysis

Considering gradual recovery in 14-day relative strength index (RSI), coupled with overall risk-on moves, the EUR/JPY pair may surpass 124.90 resistance to aim for 61.8% Fibonacci retracement of its December-January downturn, at 125.20. However, 125.77-90 area, comprising early-month highs and late December lows, could limit the pair’s rise past-125.20.

Alternatively, 124.35 and 124.15 may act as immediate supports for the pair. Given the pair declines under 124.15, 124.00, 123.75 and 123.35 could reappear on sellers’ radar.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Focus on US GDP, US dollar vulnerable to sell the fact trade

EUR/USD may see a corrective bounce if the preliminary first-quarter US GDP reading matches or fails to beat expectations by a big margin. The upbeat US retail sales data released a week ago pointed to a stronger economy in the first three months than previously expected.

EUR/USD News

GBP/USD re-takes 1.2900 amid Brexit pessimism, US GDP eyed

GBP/USD revisits 1.2900 mark while heading into the London open on Friday as investors rushed to take their greenback profits off ahead of US GDP whereas the absence of major Brexit negative news off-late also favors the pullback.

GBP/USD News

USD/JPY off-highs, but stays above 200-day MA

USD/JPY is enjoying good two-way price movements, with the upside capped by the risk-off trades in the Asian equities and Yen flows ahead of the 10-day holiday while the downside remains cushioned by mixed Japanese macro data and renewed optimism over the US-China trade deal. 

USD/JPY News

US First Quarter GDP Preview: Reasons to be cheerful

In an economy that is about 70% fueled by household spending as is the US the attitudes and outlook of the consumer are paramount. Business investment is an important if ...

Read more

Gold again aims for $1280 break as traders remain cautious

Gold is on the bids around $1278 during early Friday. Monetary policy statements from the global central banks have turned the risk tone heavier off-late while the US GDP is on the spotlight for fresh clues.

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •