The safe-haven yen ticked higher this morning as Asian markets slumped on a fast-spreading deadly virus in China and amid broader market uncertainty over the proceedings at Davos. The EUR/JPY edged sharply lower, and as global bourses look set for more declines the pair is set to remain on a SELL trend. The euro is meanwhile locked in a narrow range before a European Central Bank (ECB) meeting on Thursday where it is expected to launch a comprehensive review of its strategy and inflation target. Watch my free ECB webinar this Thursday on BDSwiss webinar page and watch me analyse the markets live.
Markets could go lower this week especially with a weaker stock market and a further rush to safe havens.
Technicals point to a correction in the charts with a bearish reversal.
Sell stop "we like to be short at" 121.90 with SL at 122.70 and TP at 121.10
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