- EUR/JPY manages to stay in the positive territory near 121.40.
- The cross faces clear resistance in the 122.00 neighbourhood.
- Markets remains focused on COVID-19 pandemic vs. recovery.
The better tone in the single currency in combination with the offered bias in the Japanese safe haven are sustaining the modest performance of EUR/JPY on Wednesday.
EUR/JPY looks to risk trends for direction
EUR/JPY is prolonging the choppiness so far this week along with alternating risk appetite trends.
In the meantime, the “pandemic vs. recovery” theme continues to rule the sentiment in the global markets at a time when coronavirus cases rise relentless in the US and fresh outbreaks remain on the rise across the world.
Nothing worth mentioning in the euro docket on Wednesday other than the speech by ECB’s Luis De Guindos, who stressed that there should be more optimism around growth prospects, as per latest data releases.
In the NA session, Atlanta Fed R.Bostic is due to speak while the EIA’s report on crude stockpiles will be the only publication of note.
EUR/JPY relevant levels
At the moment the cross is advancing 0.20% at 121.44 and faces the next up barrier at 121.96 (weekly high Jul.6) seconded by 122.11 (high Jun.16) and finally 124.43 (2020 high Jun.5). On the other hand, a drop below 119.67 (200-day SMA) would expose 119.31 (monthly low Jun.22) and then 118.84 (100-day SMA).
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