- EUR/JPY records new 2021 highs, retreats afterwards.
- US yields come under pressure and drag the dollar lower.
- Initial Claims rose by 473K, Producer Prices rose 0.6% MoM.
After recording new YTD highs in the 132.70/75 band earlier in the session, EUR/JPY came under some selling pressure on Thursday.
EUR/JPY stays supported near 132.00
EUR/JPY extends the weekly advance well past the 132.00 yardstick and visits the area last seen in September 2018 beyond 132.70.
The strong pick-up in US yields re-ignited the selling bias around the Japanese yen, all rendering in further upside traction in EUR/JPY.
Indeed, US inflation figures for the month of April came in stronger than initially estimated, fueling further the market chatter regarding higher inflation in the next months and lifting US 10-year yields back to the 1.70% area.
Nothing scheduled in the euro docket on Thursday left all the attention to the US calendar: Initial Claims rose by 473K during last week, headline Producer Prices gained 0.6% MoM in April and 6.2% from a year earlier, while Core prices rose 0.7% inter-month and 4.7% vs. April 2020.
EUR/JPY relevant levels
So far, the cross is gaining 0.10% at 132.43 and a surpass of 132.73 (2021 high May 12) would pave the way for a test of 133.00 (psychological hurdle) and then 133.13 (monthly high Sep.21 2018). On the flip side, immediate contention is located at 130.98 (weekly/monthly low May 5) seconded by 130.31 (50-day SMA) and finally 129.58 (weekly low Apr.23).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.