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  • Japanese yen outperforms on Monday as market sentiment deteriorates. 
  • Euro declines across the board, even against commodity and EM currencies. 

The EUR/JPY held firm under 118.00 and dropped further, hitting at 117.30, the lowest level since April 6. Technical factors, a stronger yen and a slide of the euro weighed on the pair. 

The yen gained momentum on Monday as equity markets pulled back after last week’s rally. The USD/JPY is losing more than 80 pips, favoring the downside in EUR/JPY. Among majors, the euro is the worst performer. EUR/USD reached levels under 1.0900 before bouncing modestly. 

Technical outlook

The EUR/JPY broke a bullish short-term trendline. Technical indicators point to the downside. The next strong support could be seen around 117.20 and below at 116.70. The 118.00 zone is now the immediate resistance. Above, the critical level for EUR/JPY is 118.70: a consolidation above would clear the way to more gains. 
 

EUR/JPY