EUR/JPY steady above 120.00 with upside attempts capped below 120.60/70
|- EUR/JPY stalls between 120.00 and 120.60/70 after bouncing up from 119.30.
- The euro remains vulnerable amid a negative market sentiment.
- EUR/JPY to retest 200-week at 124.61 on a break of 121.14 – Commerzbank.
The euro is ticking down against the safe-haven Japanese yen on Thursday although still steady above 120.00. The pair has lost about 0.2% so far today with risk sentiment weighed on the back of growing coronavirus cases and US Government’s plan to increase tariffs on European products.
The euro consolidates above 120.00 on a risk-off market
EUR/JPY recovery from Monday’s lows at 119.30 has stalled below 121.00 with the common currency weighed by the negative market sentiment. The worldwide increase of COVID-19 infections has raised concerns about a second wave of lockdowns, curbing investors’ hopes of a quick return to normality.
On another note, news reports about a US Government plan introduce new tariffs to a number of European products and the gloomy economic forecasts released by the International Monetary Fund, have dampened risk appetite further, increasing selling pressure on the euro.
EUR/JPY to retest 200-week at 124.61 on a break of 121.14 – Commerzbank
In a bigger picture, Commerzbank’s Karen Jones sees the euro extending its recovery to revisit the 200-week MA, at 124.61, “The market recently charted an outside day to the topside (or a bullish engulfing pattern) and recovered off the 200-day ma at 119.60 and the 50% retracement at 119.43. We look for the market to stabilise here and recover further, and we should see the market once again retest the 200-week ma at 124.61. This guards the 128.20 2014-2020 resistance line.”
EUR/JPY key levels to watch
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