EUR/JPY: recovers back on to the 120 handle but lacks legs
|Currently, EUR/JPY is trading at 120.14, up 0.10% on the day, having posted a daily high at 120.21 and low at 119.99.
Forex today: UK terror attack, RBNZ on hold, markets pile into safe-haven Yen
EUR/JPY is consolidating the minor recovery on the 120 handle after a yen frenzy overnight has the cross extending the recent sell-off all the way down to 119.67. The 1hr sma at 120.10 has been an anchor on the recovery and so too has the dollar, only able to manage a test of the same hourly ma and meeting previous support area where the recovery stalled. USD/JPY had dropped just under a cent overnight and claimed back 50 pips towards the close with gains in the NASDAQ and a mixed close on Wall Street. Meanwhile, the yen is picking up safe haven flows and should remain underpinned with the amount of uncertainty in the global economy and from the Trump administration.
Wall Street mixed ahead of HoR vote
For the day ahead, the Eurozone offers the March consumer confidence data that last came in at -6.2 in Feb. Then, from the US, stock markets will be keeping an eye on the developments in respect to the House of Representatives vote on passing the legislation to dismantle Obamacare. We also have Chair Yellen speaking at a Fed community development conference. Dove Kashkari is also speaking later in on at the same conference called ‘Strong Foundations: The Economic Futures of Kids and Communities’.
EUR/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that the intraday technical readings support additional declines: "In the 4 hours chart, the pair has broken below its 100 and 200 SMAs, with the shortest maintaining its bullish slope, whilst technical indicators have partially lost their bearish strength within oversold readings, but remain far from suggesting downward exhaustion, indicating that a new leg lower is more than likely on a break below 119.70, towards 118.20, February lows."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.