EUR/JPY: consolidating around central banks, awaiting key US data

Currently, EUR/JPY is trading at 120.86, down -0.09% on the day, having posted a daily high at 121.09 and low at 120.77.

US: Don’t Entirely Dismiss the Weakness in Q1 GDP - Nomura

EUR/JPY has been inching to the downside and testing the bull's commitments at the 120.80 level in early Asia. In Tokyo, the mood is equally subdued. The main event for the euro crosses was, of course, the ECB, and while the ECB stuck to their guns, many were disappointed that they did not comment on monetary policy in respect to a possible exit from its ultra-loose monetary policy. Meanwhile, the BoJ was more optimistic in its growth forecast but less so on inflationary pressures and markets are now back to US fundamentals and awaiting tomorrow's GDP outcome for first estimates of the performance in Q1.

EUR/JPY levels

Analysts at Commerzbank explained that so far EUR/JPY shot up to its current April high at 121.90, close to the five-month resistance line at 122.25 which represents our next upside target. "While no rise above the next higher March peak at 122.88 is seen the gap with last week’s high from 119.00 to 117.81 is still to be at least partially closed. Medium term the cross should still target the 112.62 October 2016 low and the 112.53 2012-2017 support line, which we look to hold and provoke reversal longer term, provided that no weekly close above the December high at 124.08 is made."