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Analysts at Rabobank continue to favour the Japanese yen against the euro in the current environment. They see EUR/JPY falling below 114.00 in a three-month horizon. 

Key quotes: 

“The JPY may have lost its safe haven crown to the USD, but the downtrend in EUR/JPY that has been in place since the start of the year is consistent with the build-up of risk aversion in the market in response to the coronavirus. In recent weeks the JPY has been sensitive to news as to how the Japanese government is dealing with the crisis. The currency sold off heavily midFebruary as the number of cases in Japan increased and, as the government took measures to reduce the spread of the illness and as cases grew outside Asia the JPY’s safe-haven appeal subsequently reasserted itself.”

“We continue to favor the JPY vs. the EUR in the current climate and look for further downside in EUR/JPY in the coming months towards 113.4 on a 3 month view.”