EUR/JPY defends four-month ascending trendline despite risk aversion
|- EUR/JPY has bounced up from a four-month ascending trendline.
- Anti-risk yen is under pressure despite broad-based risk aversion.
- Gold and oil are rising on escalating US-Iran tensions.
EUR/JPY is currently flashing green, having bounced up from the support of the trendline rising from Sept. 3 and Oct. 8 lows.
The pair is currently trading at session highs above 120.60. The trendline support is located at 120.27.
Risk-off
Risky assets are trading softer for the day and the safe havens are drawing bids, courtesy of the warlike situation between the US and Iran.
The futures on the S&P 500 are down 0.57% at press time and gold is trading at the highest level since April 2013. Oil is also extending Friday's gains – a barrel of WTI oil is changing hands at $63.88, the highest level since April 2019.
The risk-off tone could be associated with the fallout from the U.S. killing of a top Iranian military commander in Iraq. As per the latest headlines, President Trump has threatened retaliation on Iran if the nation attacks the US. Further, Trump has warned Iraq of sanctions in response to the decision by Iraqi leaders to push US militaries.
Even so, the Japanese yen, also an anti-risk currency, is trading under pressure against the common currency.
The currency pair will likely extend gains if China's services PMI, due for release at 001:45 GMT, blows past expectations, helping risky assets regain some poise.
Technical levels
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