EUR/JPY drops to 100-DMA

EUR/JPY extended Tuesday’s losses to 100-DMA support of 120.45 levels; its lowest since March 9.

Hovers above 4-hour 200-MA

At the time of writing, the cross sits above the 4-hour 200-MA level of 120.60. EUR/USD is seeing chart driven weakness in the Asian session. Meanwhile, the losses in the treasury yields and the 1.3% drop in the Dow Jones in the overnight trade is keeping the JPY well bid.

Consequently, the EUR/JPY is under pressure, although the upward sloping 100-DMA is restricting the losses in the pair. Ahead in the day, the focus remains on the broader market sentiment and the treasury yields.

EUR/JPY Technical Levels

A break below 120.50 (100-DMA) would expose 120.02 (Mar 8 low), under which the losses could be extended to 119.56 (Feb 21 low). On the higher side, resistance is seen at 120.85 (session high) could yield a rally to 121.05 (5-DMA) and 121.50 (10-DMA).