Trump Trade Fade: EUR/JPY drops to lowest since Nov 9

The unprecedented losing streak in the EUR/JPY continues, with the pair falling to 114.85; its lowest level since November 9.

EUR/JPY is the latest to join the list of forex pairs/commodities/treasuries, which suggest the Trump Trade has fallen apart.

• Iron ore has dropped into a bear market
• US 10-year treasury yield has been trading at the lowest since November
• Gold, at $1295, is the highest level since the election
• US 10-year Breakeven Inflation rate has topped out

The part of the reason for the sell-off in the EUR/JPY is the French election uncertainty. Marine Le Pen’s victory in the first round this Sunday could aggravate the sell-off in the EUR pairs.

EUR/JPY Technical Levels

The cross currently trades at the support offered by the expanding downward sloping channel on the daily chart. A daily close below 114.95 (channel support) would open doors for 114.01 (Nov 3 low). Note the daily RSI is oversold, thus a technical correction cannot be ruled out. A break above 115.47 (session high) would expose 116.01 (Friday’s high).