EUR/JPY supported above 5-DMA, despite risk-aversion

Dhwani Mehta FXStreet

The EUR/JPY cross remains on the offers amid broad yen strength, as risk-off remains in full swings, following reports of the North Korean missiles launch.

EUR/JPY fails to hold above 121 handle

The EUR/JPY pair now drops -0.35% to trade at 120.76, hovering with a striking distance of 120.68 struck last hour. The cross remains heavy as weakness seen in both the EUR/USD and USD/JPY pair in response to risk-averse market condition, with investors looking to protect their capital.

Also, resurgent US dollar demand across the board fuels renewed selling pressure behind EUR/USD, eventually collaborating to the downside in EUR/JPY. Looking ahead, the spot eyes the Eurozone retail PMI and Sentix investor confidence data to lift the sentiment around the EUR.

EUR/JPY: Technical Levels

Higher side: 121.03/19 (50-DMA/ daily high), 121.40/50 (Classic R3/ psychological levels)

Lower side: 120.58/47 (5-DMA/ Classic R3), 120/119.96 (zero figure/ Mar 3 low)

1. R3 121.57
2. R2 121.37
3. R1 121.13
PP 120.93
1. S1 120.68
2. S2 120.48
3. S3 120.24

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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