EUR/JPY struggles to extend two-day winning streak

EUR/JPY is having a tough time in the Asian session to extend the two-day winning streak on account of the caution ahead of Trump inauguration. 

Stuck at weekly 5-MA

The cross failed for the second time in 24 hours to hold above the weekly 5-MA level of 122.61. 

There is an uneasy feeling in the markets now that the markets have already priced-in the good things that could happen under Trump Presidency. However, the risks associated with the Trump Presidency are yet to be priced-in. 

Consequently, the safe haven assets- Yen, Gold and Treasuries are in demand in Asia. 

EUR/JPY Technical Levels

The cross was last seen trading around 122.50 levels. Acceptance above 122.61 (weekly 5-MA) would open doors for a potential break above 123.00 (zero figure) and rally towards 123.72 (previous week’s high). On the other hand, a breakdown of support at 122.29 (4-hour 200-MA) could yield a sell-off to 121.75 (4-hour 50-MA) and 121.59 (Dec 29 low).