EUR/JPY challenges weekly tops around 118.00
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EUR/JPY challenges weekly tops around 118.00

  • EUR/JPY reverses the initial pessimism and approaches 118.00.
  • US-China trade remains in centre stage ahead of talks.
  • US FOMC minutes expected later in the European evening.

The selling bias around the Japanese Yen coupled with decent gains in the single currency are fuelling the renewed upside momentum in EUR/JPY to the 118.00 neighbourhood.

EUR/JPY focused on data and trade

The cross is prolonging the weekly upside on Wednesday after meeting quite strong support near 117.00 the figure earlier in the week.

The rebound in US yields is giving extra oxygen to the selling bias in the Japanese safe haven, morphing at the same time into extra boost for the cross. Additionally, the shared currency has regained some composure in past hours and is also collaborating with the bounce in the cross.

Nothing scheduled data wise in Euroland today, although the attention will surely gyrate around US-China headlines in light of the imminent talks (Thursday and Friday) and the release of the FOMC minutes later today.

EUR/JPY relevant levels

At the moment the cross is advancing 0.48% at 117.88 and faces the next resistance at 118.38 (55-day SMA) seconded by 119.93 (100-day SMA) and then 120.01 (monthly high Sep.13). On the downside, a breach of 117.07 (monthly low Oct.3/7) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3).

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