EUR/JPY flirts with the 100-day SMA near 121.30
- EUR/JPY adds to Thursday’s gains above 120.00.
- No surprises from EMU advanced CPI, GDP figures.
- US PCE, Personal Income/Spending next on tap.
The better tone surrounding the European currency is sustaining the uptick in EUR/JPY to the 120.30 region, where sits the initial barrier at the 100-day SMA.
EUR/JPY focused on risk trends, data
The cross is looking to break above the multi-day side-line theme, which remains so far capped by the 100-day SMA.
Despite the buying pressure around the euro, cautiousness among investors remains high on the back of coronavirus jitters, which in turn continues to lend support to the Japanese safe haven.
In the docket, GDP figures in Euroland showed the bloc is expected to expand at an annualized 1.0% (vs. 1,1% forecasted) and headline consumer prices are seen gaining 1.4% (in line with initial projections) in the region during December.
Later in the NA session, US inflation figures tracked by the PCE will be in the centre of the debate along with December’s Personal Income/Spending, the Chicago PMI and the final reading of the Consumer Sentiment for the current month.
EUR/JPY relevant levels
At the moment the cross is advancing 0.11% at 120.30 and faces the next hurdle at 120.42 (weekly high Jan.29) followed by 120.67 (200-day SMA) and then 121.04 (55-day SMA). On the downside, a drop below 119.77 (2020 low Jan.30) would aim for 119.65 (low Nov.25 2019) and then 119.24 (monthly low Nov.14 2019).