EUR/JPY sits at the top of the H1 parabolic move, awaits higehr volumes to return
- EUR/JPY bulls sitting in at the daily consolidation waiting for a catalyst.
- US dollar and ECB's Lagarde steal the euros thunder.
EUR/JPY rallied at the start of this month from a low of 128.42 to score a high of 132.16 from where it now consolidates, probing bears in for a counter trade as profits are taken off the table at the start of a quiet week.
In the euro's favour, the ECB has left the door open for a rate hike later in 2022 should inflation risks rise last week. However, President Christine Lagarde has turned down the heat and explained that there is no need for big monetary policy tightening in the eurozone. She said inflation is set to decline and could stabilize around the ECB's target of 2%.
Meanwhile, the US jobs data from Friday also dented the euro's dominance this week. The dollar has found support, helped by US Treasury yields that rose after far better-than-expected jobs data on Friday. ''Markets have now priced in a one-in-three chance the Fed might hike by a full 50 basis points in March, and reasonable chance rates will reach 1.5% by year-end,'' Reuters noted.
In other news, “The United States and Japan on Monday announced a deal to remove Trump-era tariffs from about 1.25 million metric tons of Japanese steel imports annually after Washington granted similar access for European Union steelmakers last year,” said Reuters during late Tuesday morning in Asia.
- US, Japan reach deal to cut tariffs on Japanese steel, fight excess output