- Euro gains versus the yen on Thursday, remains under pressure.
- The bearish trend in EUR/JPY intact despite correction above 115.00.
The EUR/JPY pair rose on Thursdays after falling during the previous three days and rebounded from the lowest intraday level since 2016. During the Asian session, it bottomed at 114.40. It recovered later and topped at 115.13. As of writing it trades at 115.10, with the bullish intraday momentum intact but still moving within a downtrend.
The move higher was supported by risk appetite on the back of a combination, initially of a weaker yen and then of a rebound in EUR/USD amid a decline of the US dollar. In Wall Street, the Dow Jones was rising 0.80% and the Nasdaq 1.30%.
Chinese data boosted risk sentiment while later, expectations about Fed funds rates turning negative next year weighed on the greenback. The EUR/JPY held in positive territory despite the retreat of USD/JPY.
The euro was able to post the first daily gain and showed some stabilization after the German constitutional court gave an ultimatum to the European Central Bank regarding its asset purchases program. On Thursday, ECB President Christine Lagarde said the central bank is “undeterred” by the German court challenge. “We will continue to do whatever is needed, whatever is necessary, to deliver on that mandate”, she added.
Short-term technical levels
From a technical perspective, EUR/JPY continues to look vulnerable. The bearish trend remains in place. A recovery of the cross above 115.50, would alleviate the pressure. While on the downside, 114.80 emerges as the initial obstacle, followed by 114.60 and then 114.40 (May 7 low).
Share
