- The cross fades the initial spike to session tops near the 130.00 handle.
- Risk-on sentiment among traders appears to lose some momentum.
- FOMC, ECB meetings poised to drive markets’ mood later in the week.
After climbing as high as the boundaries of the critical 130.00 milestone in early trade, EUR/JPY met some selling pressure and is now navigating in the mid-129.00s.
EUR/JPY looks to docket, risk trends
After two consecutive sessions with losses, the cross has found some decent contention in the 129.00 neighbourhood for the time being, coincident with the key 21-day sma.
Positive news from the Italian political front has collaborated with some initial optimism around the European currency, although the up move lacked of follow through and forced the cross to recede ground.
Looking ahead, the Trump-Kim meeting tomorrow will be the salient event in the first half of the week, while the FOMC meeting (Wednesday) and the ECB gathering (Thursday) remain poised to dictate the mood around the shared currency so far this week.
EUR/JPY relevant levels
At the moment the cross is up 0.54% at 129.60 and a breakout of 130.31 (high Jun.7) would open the door to 130.56 (55-day sma) and finally 131.41 (high May 14). On the flip side, initial contention emerges at 128.23 (10-day sma) seconded by 128.12 (low Jun.8) and then 124.61 (2018 low May 29).
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