It has been a calm Monday so far and the EURJPY cross was trading flattish during the London session, hovering around 128.20 during midday trading hours.
Later in the day, Mario Draghi is due to deliver opening remarks at the ECB Forum on Central Banking in Portugal. As he most likely said all the important stuff at the press conference on Thursday, his remarks should not cause any major market movements, but traders could watch the speech just to be sure.
Earlier in the session, Japan Trade balance deteriorated notably and printed a deficit of 30 trillion JPY, down from a surplus of 45 trillion JPY in the previous month. The Japanese yen eased a little afterwards, although Japan data tend to have a little impact on the FX market.
The cross dropped back below 130.00 on Thursday and it also dipped below the strong support of 129.50. This has cancelled the bullish view. The resistance for today’s trading is around 128.50 and if sentiment improves, bulls could push the EURJPY cross to 129.00 in the initial reaction.
On the downside, the key support is at previous lows of 127.50 and if not held, the euro could drop closer toward the current cycle lows near 125.50. In all cases we strongly recommend to have rigorous money and risk management.
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