EUR/JPY falls to test two-year lows as Yen gains momentum on risk aversion

Euro consolidates losses on dovish ECB expectations for the September meeting.
Yen remains strong as bond yields reach new lows on risk aversion.

Matías Salord FXStreet

The EUR/JPY pair extended the reversal and printed a fresh daily low at 117.61, near the 2019 low established on Monday at 117.50.

Earlier today the pair peaked at 118.97 and from the top lost more than a hundred pips, making a significant reversal. It is back under pressure, about to test the 117.50 area, a critical support that if broken would signal more losses ahead.

While the Euro weakened further following comments from European Central Bank board member Rehn. His arguments triggered expectations about a large stimulus package from the ECB next month.

Regarding the yen, it remains among the strongest currencies on the bank of the risk aversion environment. Equity prices on Wall Street failed to make a recovery and US yields continue to move lower supporting the yen. The 10-year reached 1.50% for the first time in three years.

Technical levels

EUR/JPY

Overview
Today last price	117.74
Today Daily Change	-0.23
Today Daily Change %	-0.19
Today daily open	117.97

Trends
Daily SMA20	119.76
Daily SMA50	121.08
Daily SMA100	122.56
Daily SMA200	124.41

Levels
Previous Daily High	119.3
Previous Daily Low	117.78
Previous Weekly High	119.88
Previous Weekly Low	117.68
Previous Monthly High	123.36
Previous Monthly Low	120.04
Daily Fibonacci 38.2%	118.36
Daily Fibonacci 61.8%	118.71
Daily Pivot Point S1	117.4
Daily Pivot Point S2	116.83
Daily Pivot Point S3	115.88
Daily Pivot Point R1	118.92
Daily Pivot Point R2	119.87
Daily Pivot Point R3	120.44

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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