EUR/JPY Slips Dramatically – Safe Haven & Weaker Euro in Play
Arslan Butt • 1 min read
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.