EUR/JPY: consolidating while Syria risk dies down, for now

• EUR/JPY: consolidating while markets await the outcome of Trump's meetings on Syria.
• EUR/JPY: supported by the rising 4hr-200 SMA.

EUR/JPY has moved into a consolidation around the 132.20 level, with the price supported by the rising 4hr 21-SMA at 132.12. Currently, EUR/JPY is trading at 132.22, down -0.05% on the day, having posted a daily high at 132.37 and low at 132.17.

EUR/JPY has risen from the 130 handle at the start of the month and has capped out on the 10th April at 132.61. Since then, there has been an 80 pip drop since then down to 131.80 while the yen catches a safe haven bid in times of tension on the geopolitical front. However, Thursday was more positive for markets and the yen's advance was halted. USD/JPY rallied to test the medium-term resistance at 107.50. The US 10yr treasury yield climbed from 2.77% to 2.84% while the Fed fund futures yields rose as much as 4 basis points.

Dollar catches a bid

The greenback was outperforming with the DXY trading through the 89 handle,  between a 89.443 - 89.960 range with Trump toning down the ante over Syria when he tweeted ”Never said when an attack on Syria would take place. Could be very soon or not so soon at all!” Trump has requested his advisors to investigate the US rejoining the Trans-Pacific Partnership after visits from senators and others explaining the impact of China’s retaliatory tariffs on the agricultural sector. 

EUR/JPY levels

On the correction, the cross is pressuring 132.17 area of potential support where the 20-D SMA falls in. The 50-D SMA is located just below there at 131.76.

"The recent low at 128.96 was accompanied by a large divergence of the daily RSI and we suspect that we have based there," analysts at Commerzbank argued, sighting that 132.43/47 as the current March high and Fibonacci retracement comes as a key resistance guarding the January low and February 21 highs at 133.05/09.