EUR/JPY remains under pressure and trading near daily lows as the euro loses strength in the market and while the Japanese yen shows resilience amid risk aversion.
The yen is up as equity prices decline in the US. The Dow Jones was falling 0.72% while the Nasdaq was down 0.75%. Stocks moved to the downside despite the 3% rise in crude oil prices.
Earlier today, European Central Bank President, Mario Draghi said that he expects the current economic recovery to continue but warned about signals that it has lost some momentum.
EUR/JPY still in ranges
The pair is trading at 112.90/95, 50 pips below Friday’s closing price. It continues to move sideways in a short-term range with support at 112.80/85 (Sep 23 & 26 low) and facing resistance around the 113.50 area. A consolidating above 113.50 would signal a bullish continuation while below 112.90, last week lows would be exposed.
USD/JPY is at daily lows, below 100.30. If the pair falls below 100.00 it could increase volatility to yen’s crosses.
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