EUR/JPY looks bid, flirts with the 200-day SMA above 129.00
- EUR/JPY pushes higher and challenges the 200-day SMA.
- German Business Climate disappointed estimates in August.
- US Durable Goods Orders contracted less than expected in July.
The selling pressure surrounding the Japanese yen helps EUR/JPY to reclaim the 1229.00 neighbourhood on Wednesday.
EUR/JPY remains positive ahead of Jackson Hole
EUR/JPY advances for the fourth session in a row and puts further distance from last week’s lows in sub-128.00 levels.
Indeed, the cross now manages to return to the key area around 129.00, where coincides the critical 200-day SMA, the 20-day SMA and the 2021 line.
In the meantime, decent gains in the dollar put the Japanese safe haven under pressure despite US 10-year yields keep navigating a consolidative theme, always below the 1.30% mark.
In the docket, Japan’s Coincident Index improved to 94.1 in June (from 92.1) and the Leading Economic Index rose to 104.1 for the same period (from 102.6). Closer to home, the German IFO came in mixed and showed the Business Climate easing some ground to 99.4 for the current month (from 100.7).
In the US data space, headline Durable Goods Orders contracted at a monthly 0.1% in July, while orders excluding transportation expanded more than expected 0.7% inter-month.
EUR/JPY relevant levels
So far, the cross is gaining 0.17% at 129.09 and a surpass of 129.14 (weekly high Aug.23) would expose 130.01 (high Aug.5) and then 130.56 (weekly high Jul.29). On the downside, the next support comes in at 128.54 (61.8% Fibo of the January-June rally) seconded by 127.93 (monthly low Aug.19) and finally 127.02 (78.6% Fibo of the March-June rally).