EUR/JPY bounces off lows near 116.30
- EUR/JPY tumbles to lowest since September 2019 near 116.30.
- JPY-buying intensifies on coronavirus fears, oil collapse.
- German Trade Balance, Industrial Production, EMU Sentix index next on the docket.
The strong buying pressure around the Japanese yen has dragged EUR/JPY to fresh multi-month lows in the 116.40/35 band during early trade on Monday.
EUR/JPY weaker on yen demand
EUR/JPY is losing ground for the third consecutive session at the beginning of the week, testing the proximity of 116.30 on increasing demand for the Japanese currency, levels last traded in September 2019.
In fact, unabated concerns around the coronavirus (COVID-19) keep weighing on investors’ sentiment on Monday, while the ‘price war’ in crude oil have been also collaborating with the sour mood among market participants.
In addition, and exacerbating concerns around the global growth, China’s trade balance figures showed the largest deficit in the last 16 years in February ($7.09 billion), with exports contracting more than 17% and imports down 4%.
In the docket, January’s German Trade Balance figures and Industrial Production will be in the limelight later in the morning followed by the Sentix Index for the month of March.
EUR/JPY relevant levels
At the moment the cross is losing 1.43% at 117.18 and a drop below 116.36 (2020 low Mar.9) would aim for 115.86 (2019 low Sep.3) and finally 114.85 (monthly low April 2017). On the other hand, the next resistance lines up at 119.62 (21-day SMA) followed by 120.22 (200-day SMA) and then 121.39 (weekly high Feb.20).