EUR/JPY upside faltered just below 117.00

• EUR/JPY regains come composure above the 116.00 mark.
• Broad risk trends remain inconclusive in the global markets.
• US Producer Prices, Powell’s testimony coming up next in the docket.

After meeting strong hurdle in the short-term resistance line just below 117.00 the figure, EUR/JPY staged a corrective downside that has so far found decent support in the 116.00 neighbourhood.

EUR/JPY looks to risk trends

Alternating risk appetite trends continue to drive the sentiment in the global markets, with developments from the coronavirus in centre stage as well as the progress in some economies to gradually return to the normal activity.

Earlier on Wednesday, the Industrial Production in the euro area contracted 11.3% during March, showing the inital impact of coronavirus on the economy of the region.

Later in the session, US Producer Prices are next on tap, although all the attention will likely be on the testimony by Fed’s J.Powell.

EUR/JPY relevant levels

At the moment the cross is gaining 0.09% at 116.29 and faces the next up barrier at 116.85 (monthly high May 12) followed by 117.77 (weekly high Apr.30) and finally 119.03 (monthly high Apr.7). On the downside, a drop below 115.44 (monthly low Apr.29) would expose 114.39 (2020 low May 7) and then 113.71 (monthly low Nov.9 2016).