EUR/JPY: extending hourly losses to fresh lows of 121.66

Currently, EUR/JPY is trading at 121.72, down -0.54% on the day, having posted a daily high at 122.66 and low at 121.66.

EUR/JPY continues to sink lower as stock markets fall and oil drops. There are a number of risks ahead for stock markets including a normalisation of interest rates from the Fed while the US government could potentially run out of money this summer should the debt ceiling limitations not be raised in time. The yen is picking up risk-off investment and USD/JPY is back onto the 114 handle today as a result. The euro has also sold off from above the 1.07 handle down to 1.0603 the low so far. 

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EUR/JPY levels

EUR/JPY has turned back away from the 2015-2017 downtrend at 122.60 and the 3-month downtrend at 122.74. " We look for dips lower to remain shallow however and the market should remain well supported circa the 55-day ma at 121.30," explained analysts at Commerzbank. "Longer term outlook is positive: Above the 4-month downtrend lies another downtrend at 124.03 and the 124.08 December high."