EUR/JPY analysis: closing at fresh yearly lows
|EUR/JPY Current price: 119.48
The EUR/JPY pair plunged to 118.55, as the Japanese yen held strong for most of the first two sessions of the day, with safe-haven assets firmly higher. Lagging US Treasury yields, holding near their recent lows, helped the Japanese yen, despite stocks rallying in Europe and the US. Market's sentiment, however, improved following news regarding French elections, as candidates Francois Bayrou and Emmanuel Macron allied against Le Pen. The polemical far-right candidate has reiterated multiple times that she will like to withdraw France from the EU if she wins. The EUR/JPY pair recovered up to 119.85 with the news, but was unable to hold on to gains and turned lower following the release of FOMC Minutes, as stocks slipped from record highs, and the dollar eased across the board amid the absence of clear clues and a mention to fiscal risk. The pair is clearly bearish according to the 4 hours chart, failing to settle above a key Fibonacci resistance at 119.70, and with moving averages gaining bearish strength well above the current level. Technical indicators in the mentioned chart have resumed their declines within negative territory following a correction from oversold readings, further supporting a downward extension on a break below 119.00.
Support levels: 119.70 119.30 118.85
Resistance levels: 120.45 120.90 121.40
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