EUR/JPY: collapses below 200-D SMA, will the bears get below the 200-W SMA?

• EUR/JPY: highly correlated to stocks falls as Wall Street benchmarks crumble.
• EUR/JPY: headed for a test of the key 200-W SMA.

EUR/JPY is extending the downside on yen strength as stocks collapse in the last hours of trading once again. Currently, EUR/JPY is trading at 130.14, down -0.02% on the day, having posted a daily high at 130.82 and low at 129.76.

US stocks came under pressure on the tarriff/trade war concerns and inflationary pressures.  There has been an announcement that President Donald Trump would impose tariffs on steel and aluminum imports, (Trump said the U.S. would set tariffs of 25% for steel and 10% for aluminum ), subsequently adding fuel to the inflationary fire where investors are now also concerned about these protectionists trade policies that could hit U.S. corporations and consumers, (of course not so bad for U.S. Steel Corp, Nucor Corp. and Century Aluminum Co.). 

Wall Street slides on tariff proposals

2658 has been the low in the S&P so far, pressured further below its 21-D SMA and falling away now from the hourly smas. The Dow, falling 600 points, has broken trend line support and Feb 21st previous low. 

EUR/JPY levels

EUR/JPY has been at a cliff edge when it broke below the 132 handle and that cliff edge just crumbled below the 200-D SMA and broke the descending channel's support with the price sliding into a void to test below the 130 handle. Daily RSI is now into oversold territory and momentum is building with the move as well.  Failure at the 200-week ma at 129.60 would be highly bearish.