- EUR/JPY met daily support in the 120.30 region.
- US Non-farm Payrolls came in on the strong side.
- US ISM manufacturing next of relevance.
After bottoming out in the 120.30 region, EUR/JPY managed to meet some dip-buyers and is now back to the 120.50 zone.
EUR/JPY looks to US data
The cross is looking to consolidate in the lower end of the weekly range following Thursday’s sharp sell-off in response to the resurgence of concerns on the US-China trade front.
Today, the earlier dip in the cross was in response to the better-than-expected US Payrolls for the month of October, which lifted the buck and US yields in detriment of the singe currency.
Moving forward, the key US ISM manufacturing is expected to reverse somewhat the poor prints from the month of September, which fuelled concerns over the slowdown in the US economy and morphed into the strong correction lower in the Dollar seen in past weeks.
EUR/JPY relevant levels
At the moment the cross is gaining 0.03% at 120.51 and faces the next up barrier at 121.35 (monthly high Oct.17) seconded by 122.09 (200-day SMA) and then 123.35 (monthly high Jul.1). On the other hand, a breach of 119.65 (100-day SMA) would expose 118.77 (55-day SMA) and finally 117.07 (monthly low Oct.3/7).
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