- EUR/JPY faces downside pressure near 122.00 today.
- Trade, risk-trends continue to drive the global sentiment.
- German May final CPI figures left no room for surprises today.
EUR/JPY exchanges gains with losses so far on Thursday although it so far manages well to keep business above the 122.00 mark.
EUR/JPY looks to trade for direction
Trade concerns are easing a tad today after President Trump showed some confidence on a potential US-China deal in yesterday’s comments. In this regard, markets’ focus has shifted to the G-20 meeting in Japan later in the month, where Trump and Xi Jingpin could meet.
In the meantime and without no events on the horizon, prospects of the potential return to a more accommodative monetary policy stance in several G10 central banks should continue to dictate the mood around the global markets, somehow supporting the demand for riskier assets.
In the docket today, final inflation figures in Germany matched the preliminary readings for the month of May, leaving no room for surprises. In the NA session, Import/Export Prices and Initial Claims are unlikely to move the dial among investors.
EUR/JPY relevant levels
At the moment the cross is losing 0.03% at 122.43 and a breakdown of 122.10 (10-day SMA) would expose 120.78 (low Jun.3) and then 120.54 (monthly low Jan.17 2017). On the upside, the next hurdle aligns at 123.17 (high Jun.11) seconded by 123.75 (high May 21) and finally 123.86 (55-day SMA).