- EUR/JPY is range-bound as the Asian session begins, within the 129.20-52 range.
- EUR/JPY has a downward bias, but a daily close below Thursday’s low at 129.19 would expose the 128.00 figure.
The EUR/JPY is flat as the Asian Pacific session begins, is trading at 129.19 during the day at the time of writing. On Thursday, during the overnight session, the EUR/JPY remained in a choppy trading range, within the 129.20-52 range, as the market is headed towards a thin liquidity session In the observance of the US Thanksgiving.
At press time, the market sentiment is a mixed bag. Asian equity futures fluctuate between gainers and losers, while European and US stock futures rise.
The Japanese economic docket featured the Coincident Index and the Leading Economic Index, both readings for September. The Coincident Index rose to 88.7, higher than the 87.5 foreseen, while the Leading Economic Index increased to 100.9, higher than 99.7, estimations.
Concerning the Eurozone economic docket, the Gfk Consumer Confidence Survey for December contracted more than the foreseen, dropping to 1.6, lower than the 0.5. In the meantime, the German Gross Domestic Product for the Q3 rose by 1.7%, a tick lower than the 1.8% estimated.
That said, the EUR/JPY pair would lean on market sentiment, as long as the monetary policy between the European Central Bank (ECB) and the Bank of Japan (BoJ) converges. On the other hand, if the ECB moves towards a more neutral stance, the EUR would be favored by flows, as it would be viewed as a hawkish signal for investors.
EUR/JPY Price Forecast: Technical outlook
The EUR/JPY pair has a bearish bias, confirmed by the daily moving averages (DMA’s), which have a downslope, and remain above the spot price. Furthermore, the Relative Strength Index (RSI) at 40 flattish suggests EUR/JPY bears are taking a breather, before resuming the downtrend.
In that outcome, the first demand area would be the November 24 cycle low at 128.68, followed by the October 6 swing low at 128.33, and then the November 19 low at 127.97.