EUR/JPY: Selling stalls near 23.6% Fib level

Oil drop in Asia triggered a correction in the Japanese Yen and other funding currencies, thus pushing the EUR/JPY to near 118.78 (23.6% of 2014 high – 2016 low).

The cross clocked a low of 118.82 before recovering slightly to trade around 119.10 levels.

Oil takes center stage

Oil has out-trumped Trumponomics in Asia after Saudi Arabia downplayed the need for an OPEC deal. The meeting with non-OPEC members, mainly Russia was cancelled as well.

The resulting drop in oil helped the Japanese Yen gain ground. However, the losses in the EUR/JPY cross were capped around 118.78 levels as the EUR/USD strengthened as well.

EUR/JPY Technical Levels

A break below 118.78 (23.6% of 2014 high – 2016 low) would open doors for a test of support at 118.49 (10-DMA) and 118.00 levels. On the higher side, a break above 119.31 (Fri’s low) could yield a rally to 119.83 (daily high) and 120.17 (Fri’s high).