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EUR/JPY recovers from short lived correction, back near 143.00.

Japanshort-livedes momentum as bonds trims gains.EUR/USD tests the upper limit of the current range, break could trigger more gains in the cross.

The e EUR/JPY is rising for the fourth consecutive day. On Asian hours the cross peaked at 142.93, the highest level since December 20. It then pulled back to as low as 142.11. The correction was short-lived and it resumed the upside.

The 143.00 area is on the radar. It is a round number and also where the 20-day Simple Moving Average stands. A firm break above could open the doors to more gains. A failure at current levels could trigger a deeper correction, probably toward the strong barrier at 141.20.

The EUR/JPY is recovering after hitting last week at 138.77, the lowest level since late September. The Yen surged after the Bank of Japan meeting, having the biggest daily gain in years and since then it has been trimming those gains.

On Tuesday, sovereign bond yields jumped, adding to Yen’s weakness. On Wednesday yields look steady while equity markets are mixed. Trading activity is subdued amid the holidays.

Price action in EUR/USD could impact the EUR/JPY. The pair is testing the upper limit of the current range. The first attempt is being followed by a retracement that could weigh on the cross. On the contrary, a rally above 1.0670 would help EUR/JPY bulls.

EUR/USD holds steady at around 1.0650 after US data

EUR/USD edged lower and returned to the 1.0650 area after having spiked above 1.0670 in the early American session. The data from the US showed that Pending Home Sales declined by 4% in November, making it difficult for the US Dollar to gather strength.

EUR/USD News 

GBP/USD extends recovery beyond 1.2100

GBP/USD has gathered recovery momentum in the second half of the day on Wednesday and climbed above 1.2100. In addition to the improving market mood, the weaker-than-expected housing data from the US weighed on the US Dollar and helped the pair push higher. 

GBP/USD News 

Gold manages to hold above $1,800 on choppy day

Gold price managed to recover modestly after having retreated toward $1,800 earlier in the day but struggled to gather momentum. With the benchmark 10-year US Treasury bond yield staying quiet slightly above 3.8%, XAU/USD is having a tough time finding direction.