EUR JPY Recommence decline
8/1/2016 11:22:36 AM
EUR/JPY is restarting the weakness after a minor recovery from below the 127 handle yesterday to score 129.10 the high. The JPY left supported on safe haven flows and lower stocks with the S&P printing fresh lows at the end of this week. The bulk of the upside and recovery came in a stronger performance in the single currency vs. the dollar in a recovery from below 1.0720 to break onto 1.0900. However, that was a short-lived achievement as supply came in and capped EUR/USD and the downside was supported by today's strong nonfarm payrolls headliner, exposing stocks and a stronger JPY. The JPY recoiled across the board as risk aversion eased following a positive performance of the Chinese equity markets and a steadiness of the Yuan. EUR/JPY temporarily rose above the 129 mark and hit a fresh 3-day high of 129.08 before settling in a range between 128.45-128.90 over the last hours. At time of writing, the pair is trading at 128.53, almost unchanged on the day. As for technical views, direct stabilities are seen at 129.08, 129.47 and 130.00. On the flip side, supports could be faced at 126.77, 126.27 and 126.08.