- EUR/JPY retakes the 123.00 handle and above.
- JPY-selling accelerated after US-China truce.
- US ISM manufacturing next of relevance in the docket.
The renewed offered bias around the Japanese safe haven is bolstering the up move in EUR/JPY to fresh 2-month tops in the 123.35/40 band, where if found strong resistance.
EUR/JPY up on trade news, looks to data
The recently clinched trade truce between the US and China has given extra motivation to JPY-sellers to return to the markets, favouring the upside in the cross to levels well above 123.00 the figure.
In fact, yields of the US 10-year note moved higher in the wake of the positive developments from the trade front, while the auspicious meeting between President Trump and North Korea’s Kim Jong-un have also lent support to the risk-associated universe, all rendering in extra outflows from the safe haven JPY.
Earlier in the session, German labour markets figures came in on the soft side, while the final manufacturing PMI dropped further to 45.0 during last month, showing any recovery in the economy remains absent for the time being. In the broader Euroland, manufacturing PMI also disappointed expectations, dropping to 47.6. On the brighter side, the jobless rate ticked lower to 7.5% during May.
Later in the day, Markit will publish its final manufacturing PMI followed by the critical US ISM manufacturing for the month of June.
EUR/JPY relevant levels
At the moment the cross is gaining 0.23% at 122.93 and faces the next hurdle at 123.35 (high Jul.1) followed by 123.75 (high May 21) and then 124.20 (100-day SMA). On the other hand, a breakdown of 122.09 (21-day SMA) would expose 120.95 (low Jun.21) would expose 121.65 (low Jun.25) and then 120.95 (low Jun.21).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold flirts with record highs above $2,230, all eyes on US PCE data
Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.