EUR/JPY set for worst day since March 2020 on reports Russian could invade Ukraine next week

EUR/JPY has been under intense selling pressure in recent trade as reports suggest Russia may invade Ukraine next week.
The pair has slumped all the way to the 130.70 area and is down about 1.4% on the day.
That would mark its worst one-day performance since March 2020.

Joel Frank Independent Analyst

EUR/JPY slumped to session lows well below the 131.00 level in recent trade as market participants dumped their euros and piled into the yen on reports that Russia is set to invade Ukraine as soon as next week. The PBS NewsHour reporter who broke the news on Twitter said that Russian President Vladimir Putin had already decided to invade and communicated plans to the Russian military. In the immediate aftermath of the reports breaking, news emerged that the UK and EU will be evacuating embassy staff and are urging citizens to leave as soon as possible. The US is also reported to be looking at reducing embassy staff and removing its observers to the OSCE mission to Ukraine.

EUR/JPY now trades in the 130.70 area, down some 1.4% on the day, putting the pair on course for its worst one-day performance since March 2020. The euro is being dumped given its economic vulnerability to a significant reduction in Russian gas imports, upon which the continent is reliant for its energy consumption. The yen is being bought as a result of its typical safe-haven status. EUR/JPY may well dip back to pre-hawkish ECB meeting levels under 130.00 next week and, if war begins, could head towards Q4 2021 lows in the 127.50 regions.

EUR/Jpy

Overview
Today last price	130.73
Today Daily Change	-1.93
Today Daily Change %	-1.45
Today daily open	132.66

Trends
Daily SMA20	130.08
Daily SMA50	129.75
Daily SMA100	130.1
Daily SMA200	130.51

Levels
Previous Daily High	133.15
Previous Daily Low	131.87
Previous Weekly High	132.09
Previous Weekly Low	128.46
Previous Monthly High	131.6
Previous Monthly Low	128.25
Daily Fibonacci 38.2%	132.66
Daily Fibonacci 61.8%	132.36
Daily Pivot Point S1	131.97
Daily Pivot Point S2	131.28
Daily Pivot Point S3	130.68
Daily Pivot Point R1	133.25
Daily Pivot Point R2	133.85
Daily Pivot Point R3	134.54

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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