EUR/JPY firmer, retakes the 118.00 handle and above
- EUR/JPY moves higher and clinches the 118.00 mark.
- EMU flash CPI failed to surprise to the upside.
- US ISM manufacturing, Fedspeak next of note.
EUR/JPY is prolonging the sideline theme around the 118.00 handle on Tuesday following some recovery in the shared currency and the renewed offered stance around the Japanese safe haven.
EUR/JPY now looks to US ISM
The cross has reversed Monday’s retracement and it is now looking to advance further north of the key barrier at the 118.00 mark. Immediately above emerge the next resistance band at 118.40/75, where converge the 10-day, 21-day and 55-day SMAs.
EUR/JPY saw its upside renewed today following the bullish attempt in EUR after preliminary inflation figures in Euroland matched the markets’ consensus, despite showing that upside pressure in prices stay muted.
In addition, the sharp rebound in US yields have been sustaining the selling bias in the Japanese Yen so far on Tuesday, morphing into extra upside impulse for the cross.
Later in the day, the US ISM manufacturing will be the salient event along with Fedspeak. On the US-China trade front, expectations remain on the rise ahead of the high-level talks scheduled to resume at any point in the next days.
EUR/JPY relevant levels
At the moment the cross is advancing 0.20% at 118.02 and faces the next up barrier at 118.75 (55-day SMA) seconded by 120.01 (monthly high Sep.13) and then 120.26 (100-day SMA). On the other hand, a breach of 117.44 (low Sep.27) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3).