- EUR/JPY fades the earlier spike to the 118.20 area.
- EMU Sentix index improved to -11.1 in September.
- Japanese Q2 GDP came in at 0.3% QoQ and 1.3% YoY.
The positive mood in the riskier assets keeps propping up the downside in the Japanese currency, boosting EUR/JPY to daily highs in the 118.20 region.
EUR/JPY looks to trade, risk trends
The cross has resumed the upside following Friday’s pullback, with support emerging around the 21-day SMA in the 117.70 region for the time being.
Markets’ mood remains positive following last week’s auspicious headlines from the US-China trade war, highlighting the meeting between both parties early in October in Washington.
The news boosted US yields and sustained the selling bias in the Japanese safe haven, rendering in extra legs for the cross.
In today’s docket, Japanese GDP figures noted the economy expanded 0.3% QoQ during the April-June period and 1.3% over the last twelve months, both prints falling in line with forecasts.
In Euroland, the Sentix index – which gauges the investor confidence – ticked higher to -11.1 for the current month. Additional data saw the German trade surplus widening to €20.2 billion during July.
EUR/JPY relevant levels
At the moment the cross is advancing 0.14% at 118.01 and faces the next up barrier at 118.61 (high Sep.5) seconded by 119.58 (high Aug.13) and then 119.70 (55-day SMA). On the other hand, a breach of 115.86 (2019 low Sep.3) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016).
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