EUR/JPY correction gains speed as yen soars

A rising demand for the yen, pushed EUR/JPY sharply to the downside, ignoring EUR/USD, that reached fresh 6-month highs. The euro is making a sharp correction versus the yen after reaching yesterday at 125.80, the highest level in a year. 

EUR/JPY extended the decline during the American session and printed a fresh low at 123.72, the level it had at the beginning of the week. From yesterday’s highs, it has fallen more than 200 pips. Today is having the worst daily performance in months. 

Concerns about the situation between President Trump and the FBI affected market sentiment. The Dow Jones is falling the most in eight months, it stands at 20,650 down 1.50% while the Nasdaq drops 2.12%. US bonds are rising sharply and gold gains more than $20. A risk aversion environment favored the yen, that is outperforming. 

EUR/JPY relevant levels

To the downside support levels might lie at 123.30 (May 11 low), 123.00 (May 8 low) and 122.60 (May 2 high). On the upside, resistance could be seen at 124.55 (May 16 low), 124.95 (May 15 high) and 125.50.