EUR/JPY Slips Dramatically – Safe Haven & Weaker Euro in Play

EUR/JPY has violated the 116.800 double bottom support area and now the pair is heading towards 116 zones. 


Fellas, there has been a sharp drop in the EUR/JPY price as the pair fell 0.39% to trade at 116 level. The bearish momentum in EUR/JPY continues for the third consecutive day today. I think most of us know the reason, and that’s the safe-haven appeal coming from the US-China trade war and weakness in Eurozone’s economic events.
Lately, there’s been a release of Eurozone’s industrial producer prices which grew by 0.2% vs. 0.3% forecast, giving bears another reason to short EUR/JPY.
According to Eurostat, industrial producer prices rose by 0.2% in the Euro area (EA19) and by 0.3% in the EU28. Back in June 2019, prices decreased by 0.6% in the Euro area and by 0.7% in the EU28. Whereas, industrial producer prices surged by 0.2% in EU19 and by 0.6% in the EU28.


Technically speaking, EUR/JPY has violated the 116.800 double bottom support area and now the pair is heading towards 116 zones.
Most of the technical measures are suggesting bearish bias, as prices are trading below 50 and 100 periods EMA, suggesting bearish bias. While the Stochastics and RSI stay in the oversold zone. EUR/JPY may target 115.600 level during the US.session.
Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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