EUR/JPY rebounds from lows near 127.30 ahead of US data
- EUR/JPY regains the smile following Wednesday’s strong pullback.
- The next target is now at the 2021 peaks in the mid-128.00s.
- EMU’s flash Consumer Confidence is due later in the session.
The softer tone in the greenback allows the recovery in the single currency and along with it the rebound in EUR/JPY to the 127.70 region so far.
EUR/JPY looks to risk trends, data
EUR/JPY appears to have met quite a decent support near 127.30, area coincident with the 10-day SMA.
The corrective downside in US yields hurts the greenback and sponsors some profit taking among investors in light of the moderate advance of the dollar in past sessions. The Japanese yen, on the other hand, looks consolidative for the time being.
In the euro docket, the ECB Accounts noted that Board members agreed that ample monetary accommodation is still needed and remains essential. In the docket, the European Commission will publish its preliminary gauge for the Consumer Confidence for the month of February.
In the meantime, market participants will pay attention to the upcoming data releases in the US docket: Initial Claims, the Philly Fed Index, housing data and the EIA’s report on crude oil supplies.
EUR/JPY relevant levels
At the moment the cross is gaining 0.23% at 127.66 and faces the next resistance at 128.45 (2021 high Feb.17) followed by 129.25 (monthly high Dec.13 2018 and then 130.14 (monthly high Nov.7 2018). On the other hand, a drop below 127.30 (weekly high Feb.17) would aim for 126.10 (monthly low Feb.4) and finally 125.08 (2021 low Jan.18).