- EUR/JPY regains 118.00 and above and looks to stabilize.
- JPY-sell off picks up pace on higher US yields.
- US FOMC minutes coming up next in the docket.
Further JPY-selling is bolstering the daily up move in EUR/JPY beyond 118.00 the figure.
EUR/JPY now looks to FOMC, Jackson Hole
The cross is prolonging the multi-session consolidative mood below the 119.00 handle so far on Wednesday, always looking to the JPY-dynamics and the performance of US yields for price action.
The US-China trade front looks somewhat calmed as of late and this has been bolstering today’s rebound in yields of the key US 10-year reference back to the 1.60% neighbourhood, where some resistance has turned up.
In the meantime, risk appetite trends are expected to closely follow today’s release of the FOMC minutes and Friday’s speech by Fed’s J.Powell at the Jackson Hole Symposium. The Fed’s plans regarding the interest rate path as well as the outlook for the US economy are seen in the centre of the debate in the next hours.
EUR/JPY relevant levels
At the moment the cross is up 0.23% at 118.17 and faces the next hurdle at 119.13 (21-day SMA) followed by 119.87 (high Aug.6) and then 120.80 (55-day SMA). On the downside, a breach of 117.51 (2019 low Aug.12) would open the door to 114.85 (2017 low Apr.17) and finally 113.71 (monthly low Nov.9 2016).