EUR/JPY intermarket: risk off keeps the bulls contained above key support
Currently, EUR/JPY is trading at 124.38, up 0.32% on the day, having posted a daily high at 124.56 and low at 123.73.
EUR/JPY had been making tracks to the upside today with dollar weakness and the yield spreads narrowing across the board. However, Wall Street has not been performing well today and has been slowing the advance in the cross down. WTI continues to underperform with a fresh low at 47.48bbl in a risk off market. This is a significant level to the downside on the hourly chart challenging the 3rd and 8th May highs, underpining risk to the downside and slowing the crosses advance. Yen is up +0.15% vs the dollar today.
EUR/JPY failed to clear the 125.81 May high, and now eroded its 20 day ma at 124.22 that opens up 122.56 las ast weeks low and potentially the 120.94 55 day ma, as suggested by analysts at Commerzbank. To the upside, the analysts noted that above the 125.81 recent high then the 2016-2017 channel at 127.13. “Beyond this the market looks set for further gains towards the 129.55/130.82 50% retracement and the 200 week ma.”