EUR/JPY upside falters at the 200-hour SMA near 120.70
- EUR/JPY reverses recent losses and advances to 120.70.
- EMU M3 Money Supply expanded less than expected.
- Focus this week will be on data, FOMC, BoJ, Brexit.
The positive start of the week in EUR has been lending extra support to EUR/JPY, pushing it to fresh tops in the 120.70 region, coincident with the 10-day SMA.
EUR/JPY keeps looking to risk trends
After two consecutive daily pullbacks, the cross has managed to regain some buying interest and is now prolonging the bounce off recent lows around the 120.30 area, always in tandem with fresh upside momentum in the single currency.
In the meantime, the risk-complex saw its mood improved today on the back of some weakness in the buck and in response to the EU decision to delay the Brexit deadline to end of January 2020. Attention has now shifted to the UK Parliament, where MPs will vote on PM B.Johnson’s proposal for early elections (December 12).
Moving forward, it will be a very interesting week data/event-wise. Indeed, the Fed is expected to cut rates by 25 bps on Wednesday, while the BoJ is seen reasserting its dovish stance at its meeting on Thursday. On the data front, EMU advanced inflation figures are due along with October’s Non-farm Payrolls.
EUR/JPY relevant levels
At the moment the cross is gaining 0.26% at 120.70 and faces the next hurdle at 121.35 (monthly high Oct.17) seconded by 122.16 (200-day SMA) and then 123.35 (monthly high Jul.1). On the flip side, a breach of 119.71 (100-day SMA) would expose 118.58 (55-day SMA) and finally 117.07 (monthly low Oct.3/7).