EUR/JPY: a little softer in Tokyo, but not much

By FXStreet FXStreet (Guatemala) – EUR/JPY is slightly offered in the Tokyo open although there is a lack of potential for risk factors with China being out of action on holiday for the rest of the week, thus the Yen may remain soft ahead of a data packed end of week with the ECB then Nonfarm Payrolls Friday.

EUR/JPY has been probing the upside and testing the 135 handle on a walk towards the Tokyo open, rising on a weak Yen to 135.32 post Wall street closing positively despite offers in EUR/USD.

In respect of the ECB tomorrow, it is widely expected that the ECB will stay the course for now, although there may be a fair bit of discussion in respect to the negative impacts from the developments in China to the EZ , being a potential issue for delaying improvements, which will give Draghi reason to jawbone his way through the day rather than taking any tangible measures for the time being, until there is persistence in market moves before it suggests a “material change” in the fundamentals that impact the outlook for price stability.

EUR/JPY back to 135.20 support/resistance area

In a bear trend below 138.85/139.00, the pair has …read more

Source:: FX Street