- 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.
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.
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.
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