EUR/JPY keeps the range around 129.50 ahead of Powell

• EUR/JPY remains bid well above 129.00 on Friday.
• US Core PCE matched estimates at 3.6% YoY in July.
• Powell’s speech will set the tone in the global markets later.

EUR/JPY leaves behind Thursday’s pullback and resumes the uptrend, although always below the psychological 130.00 hurdle for the time being.

EUR/JPY remains bid ahead of Powell

EUR/JPY came under some selling pressure after hitting new weekly highs near 129.80 on Thursday, somehow pouring cold water over the recovery from lows in the sub-128.00 mark recorded during last week.

The Japanese yen, in the meantime, alternates gains with losses vs. the greenback amidst the side-lined fashion in US 10-year yields and rising cautiousness ahead of the speech by Fed’s Powell at the Jackson Hole event later on Thursday.

Of note in the docket, US inflation figures gauged by the PCE rose 4.2% on a year to July and Core PCE gained 3.6% from a year earlier. in addition, the trade deficit shrank a tad to $86.38 billion, also in July. Furthermore, Personal Income expanded 1.1% MoM and Personal Spending rose 0.3% inter-month.

Later in the session, the final US Consumer Sentiment for the month of July will close the weekly docket.

EUR/JPY relevant levels

So far, the cross is gaining 0.06% at 129.41 and a surpass of 129.76 (weekly high Aug.26) would expose 130.01 (high Aug.5) and then 130.56 (weekly high Jul.29). On the downside, the next support comes in at 129.18 (200-day SMA) seconded by 127.93 (monthly low Aug.19) and finally 127.00 (round level).