- EUR / JPY loses strength after failing to exceed 127.00 last week and after falls in stocks.
- Yen with limited rises despite the crash in stocks.
He EUR / JPY is trading panas below 126.50, close to the level where it closed last week. The cross recovered after having fallen towards 126.00 hours ago in a context of sharp decline in stocks.
The markets had a dramatic Asian session with sharp declines. The mood of the operators was affected by the new strain of coronavirus in England and the cancellations of flights from several countries to the United Kingdom. In addition, the lack of agreement on Brexit weighed. This was partially overshadowed by the agreement in the US to approve new fiscal stimuli that will reach 900,000 million dollars.
Technical overview
He EUR / JPY reached 127.00 on Friday and when it seemed that it was going to break definitively to the upside it fell back. That drop extended Monday. The low reached it at 125.90 and then rebounded to 126.55.
The price of the cross is back in the same range in force since the first week of December, unable to break above 126.70 / 122.00 and finding support at 125.70 / 126.00. As long as you continue in this range, an extension of the lateral travels is to be expected. A firm and confirmed break above 12.700 would enable a bullish extension, while if it fell below 125.70, the yen would be ready for an extension of the downward correction with a possible target at the 124.50 area.
Levels to consider
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