EUR/JPY trims earlier losses, rebounds from the 117.00 area
- EUR/JPY drops to monthly lows near 117.00 and rebounds.
- EMU Sentix Index worsened in October at -16.8.
- Investors’ attention remains on trade and data this week.
After bottoming out near 117.00 during early trade, EUR/JPY has managed to regain some poise and is now retaking the 117.35/40 band on renewed EUR-buying.
EUR/JPY focused on trade
The cross has resumed the downside at the beginning of the week, fading Friday’s positive price action and refocusing instead of a potential breakdown of the 117.00 support.
Steady trade in both the single currency and the Japanese safe haven keeps the cross on the defensive for yet another session and so far for the fourth consecutive week.
In the meantime, upcoming US-China high-level trade talks should keep global markets on a cautious tone amidst divided expectations over a potential agreement and rising skepticism on further escalation in tensions in the next weeks.
In the docket and other than the trade front, the broader risk appetite trends will remain vigilant on the publication of US CPI and the FOMC minutes as well as the ECB accounts.
EUR/JPY relevant levels
At the moment the cross is advancing 0.04% at 117.39 and faces the next hurdle at 118.49 (55-day SMA) seconded by 120.01 (monthly high Sep.13) and then 120.04 (100-day SMA). On the downside, a breach of 117.07 (monthly low Oct.3/7) would expose 116.56 (low Aug.26) and finally 115.86 (2019 low Sep.3).