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. 

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

 

 

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