EUR/JPY is losing height, nears 23.6% fib support

The bid tone around JPY strengthened in Asia amid broad based USD weakness, weak equity markets, and upbeat domestic data, thus pushing the EUR/JPY cross lower to near 121.64 (23.6% of Nov 9 low - Dec 15 high).

Dollar on defensive, EUR underperforms

The American dollar is nursing broad based losses after President-elect Donald Trump talked little about the fiscal policy. The dollar bulls were disappointed by Trump’s silence over economic policies.

However, the EUR has not been able to do much against the US dollar. Meanwhile, the Dollar-Yen pair lost 0.20% in the Asian trade. Consequently, the EUR/JPY cross dropped 0.25% to 121.72 levels.

The losses in the Asian equities and the upbeat Japanese current account surplus figure also added the strength in the Japanese Yen.

EUR/JPY Technical Levels

The pair had dropped to a low of 121.24 yesterday before recovering losses to end the day on a flat note at 122.13 levels. The cross was last seen trading near 121.80 levels.

A break below 121.64 (23.6% of Nov 9 low - Dec 15 high) would expose previous session’s low of 121.24. A violation there would open doors for 120.91 (Dec 8 low). On the higher side, breach of 122.23 (session high) could yield a rally to 122.62 (previous day’s high) and 122.94 (Tuesday’s high).