EUR/JPY reverses from four-week highs and turned negative under 129.00

  • Euro’s  momentum fades after ECB spike.
  • Yen soars across the board amid a retreat in US yields.

The EUR/JPY peaked during the American session at 129.63, the highest level since November 19, following the European Central Bank meeting. During the last hour, it reversed sharply and dropped to 128.60, turning negative for the day amid a rally of the Japanese yen.

The JPY strengthened amid a decline in US yields. Despite Wednesday’s Fed signs about three potential rate hikes for 2022, Treasuries are up on Thursday. Over the last hours, the 10-year hit a fresh low at 1.42% and weighed on USD/JPY.

Earlier the ECB left interest rates unchanged and reduced its bond purchases, mostly in line with expectations. The euro rose moderately but then lost momentum.

Bullish but…

The EUR/JPY continues to move away from the recent low but the current reversal shows the recovery is bumpy. If the euro slides back under 128.30 it would weaken the short-term outlook. On the upside, EUR/JPY needs a daily close above 129.20 in order to clear the way to more gains.

Technical levels

FX

Articles You May Like

Broadcom is having its own Nvidia moment as shares rise 20% on week
Swiss Franc Rallies Amid Falling Yields and Political Risks
Gold Price Today: Yellow metal opens at Rs 71,650 per 10 grams, Silver at Rs 89,152/kg
May retail sales rise 0.1%, weaker than expected
Unlocking Apple’s Stock Potential: Technical Signals to Watch

Leave a Reply

Your email address will not be published. Required fields are marked *