EURJPY Sinks to Flash Crash Levels as Yen Welcomes Risk Aversion

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This unfavorable development has added another layer of uncertainty ahead of crucial negotiations between the two countries. With fears elevated over trade talks crumbling as Trump prepares to raise tariffs on Chinese goods, investors have scattered from riskier assets to safe-haven investments like the Japanese Yen.

The Yen has warmly welcomed the risk-off mood today, especially when considering how it has appreciated against all major currencies including the Dollar. Focusing on the technical picture, the USDJPY is under pressure on the daily charts with prices trading below 110.00 as of writing. A daily close below this level is seen opening a path toward 109.00.

EURJPY eyes 122.50 support level

Risk aversion has instilled Yen bulls with enough inspiration to drag the EURJPY towards flash crash levels witnessed in January 2019.

The currency pair fulfills the prerequisites of a bearish trend on the daily charts as there have been consistently lower lows and lower highs. A solid breakdown and daily close below 122.50 is likely to encourage a drop towards 121.00.

GBPJPY tumbles below 143.00

The combination of Pound weakness and Yen strength has excited GBPJPY bears this week with prices dipping below 143.00 as of writing. Prices are bearish with further downside on the cards amid the risk-off sentiment. The first key level of interest will be around the 141.50 point.

AUDJPY edges towards 76.00

We remain bearish on the AUDJPY below the 77.50 level. Should prices sink below the 76.00 level, this may open the gates towards 75.00 and lower.

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Published by

Lukman Otunuga

Lukman Otunuga is a research analyst at FXTM. A keen follower of macroeconomic events, with a strong professional and academic background in finance, Lukman is well versed in the various factors affecting the currency and commodity markets. Lukman provides in-depth analysis on the global currency and commodity markets and is often quoted by leading international media outlets such as: MarketWatch, CNBC, NASDAQ, Reuters, AFP, The Guardian and Yahoo. Prior to joining FXTM, Lukman spent two years as a research analyst with international currency broker FXCM, where he focused on a technical and fundamental analysis of the global currency, commodity, and stock markets. Lukman was also responsible for leading educational seminars for international and local high net worth individuals, and has published a series of educational articles on forex trading with City A.M. Lukman holds a BSc (hons) degree in Economics from the University of Essex, UK and an MSc in Finance from London School of Business and Finance, where he studied corporate finance, mergers & acquisitions and the role of international financial institutions