EUR/JPY bulls struggle with daily resistance structures, hourly triple-test of supply area
- EUR/JPY bears taking back the reigns as yen strengths across the board.
- US equities in trouble at key support levels in the benchmarks.
At the time of writing, the cross is trading on the offer and is sinking into negative territory.
EUR/JPY has fallen with a day's range of between 124.24 and 123.70, despite a favourable run in EUR/USD which has just run into supply at the session highs.
The yen is running away with it today as the top performer while the USD sinks to the lowest levels since winter 2018.
US equities fueling a bid in the yen
US stocks are also a culprit in the decline in the cross in recent trade was the bears step on the gas into the closing hour.
The S&P 500 is on the verge of closing over 1% down on Thursday as it tests a critical daily sport line.
The euro had been bid on the back of the EU's €750 billion recovery fund to battle the economic impact of the COVID-19 pandemic.
However, that trade could well have run its course for now, with the euro hitting almost two-year highs above $1.16, especially through the cross as the yen gathers speed for its safe-haven allure.
The bulls, however, will hope that the USD will remain offered as investors continue to sell the buck on expectations the US economy will likely underperform its peers in the developed world with the surge in new coronavirus case.
EUR/JPY levels
An hourly triple-test of supply area is in play here:
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
