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.
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.
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.
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.
This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
