EUR/JPY: bulls can't get above the descending 50-hr SMA

  • EUR/JPY: stabilising below the 50-hr SMA
  • EUR/JPY: global stock prices are key.

EUR/JPY is stabilising below the 50-hr SMA at 133.19. Currently, EUR/JPY is trading at 132.98, down -0.40% on the day, having posted a daily high at 133.82 and low at 132.52.

Funda and political news wrap, the key headlines so far

EUR/JPY has been better offered for the best part of Feb so far on the back of a flight to safety with the majority of the flow headed into the yen and the dollar. However, the euro is a much better performer today with US yields lower, albeit noting the dip in German yields overnight, and the cross has been attempting a recovery but once again capped by the descending 50-hr SMA - a trend that has been in play since 5th Feb.

A key element to the cross's performance stays with the environment in global stock prices 

European stocks end in the red

The rout has since been put down to nothing more than a healthy correction, but volatility has certainly been a prevailing factor in markets that could be here to stay for some time yet, anchoring recovery attempts in the yen crosses.

EUR/JPY levels

Analysts at Commerzbank noted that last week, the cross eroded the 6-month uptrend located at 134.29 and explained that this level is now acting as nearby resistance. "The market has also eroded the 133.09 January low and should come under further downside pressure. Currently, intraday rallies are indicated to fail circa 133.90/134.55. Directly below lies the 131.16 November low and the 130.89 200 day ma," the analysts added. 

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.