- EUR/JPY tumbles in Tokyo, continuing broad market retreat into safe havens.
- Yen the currency of last resort as markets pile in, undaunted by BoJ rhetoric.
EUR/JPY continues to tumble in Asia, trading around the 134.40 handle as of writing.
The Yen is gearing up to be the big winner despite Japanese officials trying to talk down the Japanese currency today, as risk aversion becomes the market theme and Asian trading continues the global market selloff that characterized New York trading, with major indices off record highs to set record drops.
With little data on the docket before the ECB’s non-monetary policy meeting on Wednesday, EUR/JPY can expect to track the equities rout unless Tokyo changes its tune, or European traders find some risk appetite following today’s roller coaster ride.
The pair is trading into heavy support at the 134.30 level; if markets capitulate much further, the way could be cleared for EUR/JPY seeing 133.00 before too long. Intraday levels are widening rapidly, with the nearest swing resistance level seen near yesterday’s low of 134.89.
Today’s pivot points: