EUR/JPY: continues to hold the 131 handle in absence of risk-off

  • EUR/JPY steady into Tokyo.
  • EUR/JPY firmer on dollar weakness.

EUR/JPY has failed three times below the 132.00 level in recent sessions, currently, EUR/JPY is trading at 131.16, down -0.07% on the day, having posted a daily high at 131.36 and low at 131.13. Risk-off sentiments have cooled down since Trump appeared more flexible on tariffs and the N.Korean risks abated on recent headlines. EUR/JPY bounced overnight from to 131.35 before peeling off back tot he downside and then into a sideways drift, pressuring 131.20 in the early Asian session. 

US stocks lose the momentum

Asia's strong equity gains were followed by a cooler mood in Europe and North America with the S&P drifting lower to 2780 and the DJIA tailing off to 25156. USD/JPY was soft while the euro was firmer making for a steady decline in the cross. 

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY needs to regain the late February high at 132.18 in order to negate the move lower and to re-target the high from February 21 at 133.05 and the 55 day moving average at 133.86. "Minor support can be spotted at the March 8 low at 130.53. Below it lies the current March low at 129.35, unexpected failure of which would push the August low at 127.57 to the fore," the analysts added.

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