EUR/JPY is trading at 124.92, up 0.19% on the day
Currently, EUR/JPY is trading at 124.92, up 0.19% on the day, having posted a daily high at 125.33 and low at 124.12.
- USD/JPY prints fresh lows under 111.00
EUR/JPY has hit a road block with a turn in the yen today. Until now, the yen had been underperforming in recent sessions in an environment of broad-based risk appetite and USD weakness.
However, analysts at Scotiabank suggest that the broader tone appears set to deliver further downside in JPY, a reflection of JPY’s risk profile and tendency to weaken in periods of risk appetite (and vice versa). “Next week’s domestic risk centres on the release of trade and CPI data, along with a public appearance from BoJ Gov. Kuroda,” noted the analysts.
Meanwhile, the euro is garnering demand due to dollar weakness and a renewed optimism in the European economy after the Macron victory with subsequent political stability. Prospects of the ECB tapering in the medium to longer term is also adding additional support for the single currency.
Analysts at Commerzbank noted that EUR/JPY made a strong rebound off the 20 day ma and argued that this keeps the market immediately bid: “EUR/JPY has sold off to and seen a strong recovery off the 20 day ma at 123.32 The dip back is indicated to terminate circa 121.10/122.20. Attention is back on the 125.81 recent high then the 2016-2017 channel at 127.00. Beyond this the market looks set for further gains towards the 129.55/130.89 50% retracement and the 200 week ma.”