EUR/JPY consolidation below 129 handle ahead of Jackson Hole

Currently, EUR/JPY is trading at 128.83, down -0.04% on the day, having posted a daily high at 129.15 and low at 128.49.

US stock slide during early trade, weighed down by Trump comments

EUR/JPY is consolidated as markets contract on Wall Street ahead of the Jackson Hole. However, the data overnight was somewhat promising for the eurozone and gave the euro a boost. "Together with this morning’s PMI, August is shaping up to be another good month for Eurozone growth. Optimism among businesses and consumers rides high for the moment, which means that 3Q should be a continuation of strength in the Eurozone economy," explained Bert Colijn, Senior Economist, Eurozone at ING Bank.

"The Jackson Hole is Fostering a Dynamic World Economy, explained analysts at Brown Brothers Harriman.  "It does not lend itself to a talk of the nuances of monetary policy. Besides, what could Yellen say that could truly impact expectations for the trajectory of monetary policy that she did not say to Congress in last month's testimony?  And if there were any questions, NY Fed President Dudley's recent comments would seem to answer them," argued the analysts.

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY is to further recover from its 127.57/46 late June and Resistance line is at 129.97 August lows. "As long as the 127.46 level holds on a daily chart closing basis, the one month resistance line at 129.87 could be revisited. Were a drop below the 127.46 level to be seen, though, we look for slippage to the May high at 125.81 to unfold. Where are we wrong near term? Initial resistance at 130.39 (August 16 high) guards the recent high at 131.40. Only above here would reintroduce the 134.32/61.8% of the move down from 2014," explained the analysts.