EUR/JPY meets daily resistance near 120.30, the 21-day SMA

• EUR/JPY’s upside stays limited by the 21-day SMA.
• Focus of attention remains on US-China trade.
• US PCE, Q3 GDP next in centre stage.

After once again testing daily highs near 120.30, EUR/JPY came under selling pressure and is now hovering around the 120.10 area.

EUR/JPY looks to data, trade

Following two consecutive sessions with gains, sellers appear to have regained the upper hand amidst increasing weakness around the single currency, while the selling bias in the Japanese yen looks insufficient to extend the recovery so far.

In fact, sellers continue to hit the Japanese safe haven in response to rising hopes of a positive outcome from the US-China’s ‘Phase One’ deal, particularly after President Trump reiterated on Tuesday that an agreement is ‘very close’.

Later in the day, the attention will be on another estimate of Q3 GDP figures seconded in relevance by October’s inflation gauged by the PCE, Durable Goods Orders, Initial Claims and the Chicago PMI.

EUR/JPY relevant levels

At the moment the cross is losing 0.06% at 120.09 and a breach of 119.65 (low Nov.25) would expose 119.33 (100-day SMA) and finally 119.24 (monthly low Nov.14). On the flip side, the next up barrier is located at 120.68 (high Nov.18) seconded by 121.47 (monthly high Oct.31) and then 121.66 (200-day SMA).