EUR/JPY Happy To Hold A Tight Range, Awaits ECB Minutes

EUR/JPY has added 8 pips, holding a narrow range in the Asia-Pac session. The rate last sits at Y124.75, struggling to challenge yesterday's high.

• The EU and UK continue playing their chicken game, with PM Johnson's gov't threatening to abandon negotiations if there is no proposal of a deal by the European Council summit slated for Oct 15, albeit press reports suggested that Brussels doesn't believe that UK gov't would keep that promise.
• Elsewhere, consecutive European governments have announced measures to curb the rapid resurgence of coronavirus, with Berlin among the latest capitals to tighten restrictions on the operation of bars and restaurants.
• The rate re-tested its 50-DMA (Y124.86) earlier in the day and a clean break here would open up Sep 16 high of Y125.01, followed by the 61.8% recovery of the Sep 1 - 28 sell-off at Y125.28. Bears need a dip under Sep 29 & Oct 2 lows of Y123.03 to regain poise.
• German trade balance, ECB Aug MonPol meeting minutes and comments from the central bank's de Guindos, Schnabel, de Cos and Mersch take focus in Europe.