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EUR/JPY looks supported around 118.00, focus on Eurogroup

  • EUR/JPY keeps the trade above 118.00 so far.
  • Markets’ attention shift to the upcoming Eurogroup meeting.
  • US Initial Claims rose by 6.6M during last week.

The slightly offered bias around the greenback is allowing the single currency to regain some poise and push EUR/JPY to the 118.60 region, where it lost some upside momentum afterwards.

EUR/JPY immersed within a broad side-line theme

EUR/JPY keeps following the broader risk appetite trends, which continue to look to the developments from the coronavirus and its impact on the global economy for direction.

Later in the Old Continent, the single currency is forecasted to remain under the microscope as the Eurogroup will hold its second meeting, with a joint issuance of new debt on top of the agenda aimed at helping some members to counteract the COVID-19 fallout.

In the euro docket, earlier German trade surplus widened to €21.6 billion during February, coming in above estimates. In the US, key Initial Claims rose by 6.6 million during last week, showing that around 17 million US citizens applied for unemployment benefits in the last three weeks.

Also adding to the downbeat tone in the dollar, the Federal Reserve announced it will provide USD 2.3 trillions in new loans.

EUR/JPY relevant levels

At the moment the cross is gaining 0.20% at 118.37 and faces the next hurdle at 119.03 (weekly high Apr.7) followed by 119.83 (200-day SMA) and then 121.14 (monthly high Mar.25). On the downside, a drop below 116.35 (monthly low Apr.2) would expose 116.30 (low Mar.12) and finally 116.12 (2020 low Mar.9).

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