EUR / JPY volatile, turns positive above 122.00

• EUR / JPY falls to the 121.60 area, where decent support emerges.
• Lingering risk aversion, the moderate ECB weighs on the crossover.
• EMU and Germany’s Q3 GDP figures surprised to the upside.

The dominant sentiment of risk aversion in global markets continues to fuel the downward momentum of the EUR/JPY, this time to new 3-month lows in the 121.60 zone, although he later managed to regain some composure and return to positive territory.

EUR / JPY bearish on pandemic fears

EUR / JPY manages to move past initial pessimism that forced the cross to fall for the fifth session in a row and break below the key support area around 122.30, or September lows, and retest the levels last seen. time in mid-July.

Indeed, mounting fears about the impact of the rapidly spreading coronavirus pandemic on the global economy continue to add support to the demand for safe-haven space, clearly giving additional wings to both the dollar and the yen.

Turning to euro zone data, preliminary GDP figures showed the economy is expected to rebound sharply by 12.7% in the July-September period, while the unemployment rate remained at 8.3% during the month. past. Along the same lines, the German economy is also expected to expand more than 8% during the same period, although Retail Sales contracted to 2.2% monthly in September.

Relevant levels

Right now, the cross is gaining 0.01% at 122.06 and faces the next hurdle at 123.56 (100-day SMA) followed by 124.40 (55-day SMA) and then 125.08 (Oct. 9 monthly high). On the downside, a drop below 121.61 (October 30 monthly low) would point to 121.13 (200-day SMA) and finally 119.31 (June 22 monthly low).