- EUR / JPY retests the daily highs near the 129.00 stick.
- EMU flash CPI rose 3.4% year-on-year, core CPI gained 1.9% in September.
- The US PCE rose 4.3% year-on-year in August, the underlying PCE rose 3.6% year-on-year.
The tone offered in the dollar allows the European currency and risk-linked assets to regain some traction and is now pushing the EUR/JPY to the 129.00 zone.
EUR / JPY looks at risk trends to find direction
The EUR / JPY is looking to move past the recent weakness and attempt to extend the bounce from the previous weekly lows at the 128.60 area.
While the dollar’s sell bias favors the single currency’s bullish momentum, the drop in US yields weighs on the dollar and makes the Japanese yen regain some ground lost in recent sessions.
On the euro agenda, the most prominent event was the publication of advanced inflation figures in the euro zone in general, where the general CPI is expected to increase by 3.4% year-on-year and the core CPI by 1.9% year-on-year in September.
In the US and prior to the release of the manufacturing ISM, PCE-tracked inflation rose 4.3% in one year to August and 3.6% year-on-year if food and energy costs are excluded. In addition, Personal Income and Expenses expanded at a monthly rate of 0.2% and 0.8%, respectively, in the same period.
Technical levels
So far, the cross is up 0.01% to 129.82 and a breakout of 130.47 (weekly high on September 29) would expose 130.74 (monthly high on September 3) and then 131.02 (Fibonacci level). On the downside, the next support comes at 128.59 (weekly low on October 1) followed by 127.93 (monthly low on September 23) and finally 127.00 (round level).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
