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EUR/JPY drops for seventh consecutive day as equities retreat

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The risk-off tone in the Asian equities triggered the carry unwind and pushed the EUR/JPY pair lower for the seventh straight day.

    Nears 123.00

    The cross is trading a few pips short of 123.00 handle after opening at 123.54 levels in early Asia today. Oil prices extended losses on the API inventory buildup, worsening the sentiment in the markets. Asian equities is a sea of red, hence the demand for the carry currencies spiked.

    Given the economic calendar in Europe is empty, the currency pair is at the mercy of the broader market sentiment. Oil price action will become more relevant ahead as European equities are more sensitive to gyrations in oil.

    EUR/JPY Technical Levels

    A break below the psychological figure of 123.00 would open doors for a slide to a major support seen on the monthly chart at 121.03 (May 2011 high). On the other hand, a recovery above 123.33 (Apr 2011 high) would expose the 5-DMA resistance at 124.40.
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