EUR/JPY under pressure, clings to gains around 130.30

EUR/JPY fades the initial uptick to 130.50 on Monday.
Trading conditions remain thin amidst the US holiday.
EMU’s Sentix index eased a tad to 19.6 in September.

Pablo Piovano FXStreet

The offered stance in the Japanese yen motivates EUR/JPY to return to the positive territory at the beginning of the week.

EUR/JPY focuses on the ECB event

EUR/JPY manages to resume the upside on Monday following Friday’s moderate pullback from new tops in the 130.70/75 band, all after the US Nonfarm Payrolls disappointed market participants in August.

In the meantime, the consolidative theme prevails in the global assets against the backdrop of diminished trading conditions in response to the inactivity in the US markets due to the Labor Day holiday.

The cross fades the early run to the mid-130.00s on Monday, as the decent recovery in the greenback puts the European currency under some mild downside pressure.

In the euro docket, in the meantime, the Sentix Index – which gauges the Investor Confidence in the euro area – receded to 19.6 for the current month while earlier data showed the German Factory Orders expanded 3.4% MoM in July, adding to June’s 4.6% expansion.

EUR/JPY relevant levels

So far, the cross is gaining 0.02% at 130.31 and a surpass of 130.74 (monthly high Sep.3) would expose 131.08 (100-day SMA) and then 131.75 (61.8% Fibo of the June-August drop). On the downside, the next support comes in at 130.08 (55-day SMA) seconded by 129.38 (monthly low Aug.19) and finally 127.93 (monthly low Aug.19).

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.

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold flirts with $4,100, four-day lows

Gold adds to Friday’s losses and comes closer to the key $4,100 mark per troy ounce at the beginning of the week. The yellow metal’s retracement comes in response to the persistent advance in the US Dollar in combination with the resurgence of the upside momentum in US Treasury yields across the curve.

Crypto Today: Bitcoin rally slows while Ethereum and XRP extend recovery amid slowing ETF inflows

Bitcoin is narrowly consolidating while trading above $86,000 at the time of writing on Monday. Altcoins, on the other hand, show a positive outlook, with Ethereum edging higher above $2,700 while Ripple steadies above $1.52.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.