- EUR/JPY bulls running out of steam and capped through the 200-DMA.
- Year-end flows in play and the June and July highs at 123.18/34 may still be reached.
EUR/JPY has been capped through the 200-day moving average and its rally has morphed into a consolidation. The market’s initial euphoria of a phase one trade deal has started to dissipate and we are seeing less momentum in markets across the board.
EUR/JPY is currently trading at 121.79 having travelled to a low of 121.74 from a high of 122.16 while equities slow down on the bid and despite the German IFO business expectations for December improved from 92.1 to 93.8, the euro takes a dive.
EUR/USD taking a hit at 200-DMA
EUR/USD fell today, heading towards a test back below 1.11 the figure, capped by the 200-day moving average. The data was higher than expected and the largest monthly rise since mid-2018 – the business climate index also beat expectations.
EUR/JPY levels
Analysts at Commerzbank noted that EUR/JPY’s slipped back towards the 121.47/33 200-day moving averageand October highs and thus stays below the 61.8% Fibonacciretracement and last week’s high at 122.63/65.
“Into year-end the June and July highs at 123.18/34 may still be reached,though. Further up sit the March low and the May 21 high at 123.65/75.Support below the 200 day moving average at 121.30 comes in at the121.01 early December high.”
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