- EUR/JPY is up 0.56% on the week amid a risk-on market mood.
- The United States and the United Kingdom will ban oil imports from Russia.
- EUR/JPY Technical Outlook: Once stuck in the 126.70-95 region, it would resume its bearish bias.
The shared currency recovers some ground against the underperforming, safe-haven Japanese yen amid a risk-off market environment. Factors such as Russia maintaining ceasefires along Ukraine’s corridors and a major joint sale of euro zone bonds to fund defense and energy buoyed the EUR, which gained against most G8 currencies on Tuesday. At the time of publication, the EUR/JPY trades at 126.12.
At the end of the New York session, market sentiment improved, reflected by the rise in US equities. In Asia, stock market futures fluctuate, although they generally continue at the Wall Street close. It is worth noting the oil embargo by the US and the UK. US President Joe Biden said the US would ban imports of Russian fossil oil, while UK Prime Minister Boris Johnson said the UK would not allow imports of Russian crude, but yes those of coal and natural gas.
On the same note, Russian President Putin signed a decree restricting the import and export of specific goods and raw materials until December 31.
EUR/JPY overnight, the pair was range bound in the 125.14-60 area before breaking through the 126.00 level on euro bond news. As North American traders reached their desks, the pair rose above the 100 hourly simple moving average (SMA) at 126.72.
EUR/JPY Price Forecast: Technical Outlook
EUR/JPY jumped near the lower trend line of a descending channel on Tuesday, cross-currency pairs remain biased to the downside. That said, the first support for the EUR/JPY would be the 126.00 mark. A breach of the latter would expose the Jan 18 low at 125.08. Once cleared, the next support would be the yearly low at 124.39, followed by crucial support levels. November 19 and 27, 2020, at 123.90 and 122.84, respectively.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
