EUR/JPY Slips Amid Weaker Trade Balance & Safe Haven Appeal
Arslan Butt • 1 min read
On Friday, the markets are lacking volatility and trading volume due to lack of economic events. However, the single currency euro dropped to a two-week low on Friday against the dollar. Similarly against the Japanese yen, which extended the gains it made the day before after US retail sales data came out better than expected.
Eurostat just released the latest trade balance figure, which disappointed the Euro buyers again. The data missed the forecast of 18.7B and reported a trade surplus of only 17.9B in the month of July.
While the Japanese Yen remains the beneficiary of a broad fundamentally driven safe-haven demand against peers, dragging EUR/JPY down from 119.500 to 117.900. The pair got a boost on Tuesday of this week when the Trump administration indicated that some tariffs against China could be delayed.
EUR/JPY – Technical Levels
Key Trading Level: 118.24
Technically, EUR/JPY is testing triple bottom support area of around 117.500 after completing 50% retracement level of around 119.500.
The pair has closed Doji candles, right above the strong support area of around 117.500. We may see a bounce off in EUR/JPY above this level until 118.500. However, a break below can lead to EUR/JPY towards 117 and 116.850.