EUR/JPY mixed in risk-off Paris terror markets

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - EUR/JPY is currently trading with a high of 131.51 and low of 130.64 as risk-off gets going in early Asia.

    EUR/USD is now trading back onto 1.07 handle on a minor reversal after the opening supply post Paris terror at the close of NY last week. EUR/JPY was dragged down with it, tipped to sink lower on risk-off flows while stock markets will likely bear the brunt of outflows with S&P 500 futures down 0.% at time of writing and the Nikkei opening down 1.7%. The outcome of this tragic event may leave the ECB with little choice but to extend and/expand their QE programme while Paris could go into a recession on the back of the tourism industry, confidence and retail sales / consumer spending hitting a road-block. Meanwhile, Japan has just released GDP for Q3 and is technically in a recession. This may limit the downside in the cross fundamentally and behind the risk-off scenes.

    EUR/JPY levels

    Technically, 128 would be the key psychological target to erode the April uptrend and the price remains under offer below the 200 DMA at 134.35. Valeria Bednarik, chief analyst at FXStreet noted the technical picture in full here within the "Paris terror could see EUR crosses and stocks sold off", while the cross is correlated to the stock markets.
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