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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, EUR/JPY and USD/JPY hold at support ahead of US employment data

​​Outlook on EUR/USD, EUR/JPY and USD/JPY ahead of US NFPs.

USD/JPY Source: Bloomberg

​​​EUR/USD probes minor support zone ahead of US employment data release

EUR/USD's reversal off Wednesday’s four-month high at $1.1017 on softer eurozone inflation, which brought forward European Central Bank (ECB) rate cut expectations, provoked six straight days of losses with the mid-September and early-November highs at $1.0769 to $1.0756 being revisited.

For now this support area holds, but if it were to give way, the 24 October high at $1.0695 would be in sight.

Resistance can be seen between Thursday’s high and the 200-day simple moving average (SMA) at $1.0817 to $1.0824. Further up the 22 November low at $1.0853 may also act as resistance, were it to be reached at all.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​Sharp EUR/JPY sell-off find technical support

EUR/JPY's swift decline off its ¥164.30 November peak amid ECB rate cut expectations accelerated on Thursday when the Bank of Japan (BoJ) Governor Kazuo Ueda’s hinted at ending the country’s negative interest-rate policy.

​The cross dipped to the 200-day SMA at ¥153.98 which offered support. While Thursday’s low at ¥153.18 holds, a minor bounce may take it back to the ¥156.00 area, above which resistance can be found around the mid-October low at ¥157.05.

​Failure at ¥153.18 would engage the July tough at ¥151.42.

EUR/JPY chart Source: IT-Finance.com
EUR/JPY chart Source: IT-Finance.com

​USD/JPY tries to hold at fresh four-month low

USD/JPY's descent has been accelerated by speculation that the BoJ could phase out its massive stimulus next year and has so far taken it to ¥141.63, to around the 200-day SMA at ¥142.29 which acts as support.

​Weaker-than-expected Japan Q3 gross domestic product (GDP) amid a current account surplus which exceeded forecasts and remained positive for a ninth consecutive month have led to a minor recovery rally with USD/JPY revisiting its late-August and early-September lows at ¥144.45 to ¥144.54. Together with the ¥145.07 late-June high, this area may cap the current bounce, though.

​A fall through ¥141.63 would put the July low at ¥138.08 on the map.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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