EUR/JPY struggles to extend two-day winning streak

Omkar Godbole FXStreet Contributor

EUR/JPY is having a tough time in the Asian session to extend the two-day winning streak on account of the caution ahead of Trump inauguration.

Stuck at weekly 5-MA

The cross failed for the second time in 24 hours to hold above the weekly 5-MA level of 122.61.

There is an uneasy feeling in the markets now that the markets have already priced-in the good things that could happen under Trump Presidency. However, the risks associated with the Trump Presidency are yet to be priced-in.

Consequently, the safe haven assets- Yen, Gold and Treasuries are in demand in Asia.

EUR/JPY Technical Levels

The cross was last seen trading around 122.50 levels. Acceptance above 122.61 (weekly 5-MA) would open doors for a potential break above 123.00 (zero figure) and rally towards 123.72 (previous week’s high). On the other hand, a breakdown of support at 122.29 (4-hour 200-MA) could yield a sell-off to 121.75 (4-hour 50-MA) and 121.59 (Dec 29 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Low
1H	Strongly Bearish	Neutral	Low
4H	Strongly Bearish	Neutral	High
1D	Bullish	Overbought	High
1W	Bullish	Neutral	High
Updated Jan 19, 02:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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