EUR/JPY bears take control again on Wall Street sell-off

• EUR/JPY offers continue.
• EUR/JPY headed towards five-month uptrend? 

EUR/JPY has dropped below the 100 1hr SMA at 136.28 as the euro gives background to the dollar while USD/JPY remains better offered below the 100 handle. Currently, EUR/JPY is trading at 136.10, down -0.81% on the day, having posted a daily high at 137.21 and low at 136.10.

Yen is bid on Wall Street's correction

EUR/JPY has been a constructive bid from the 132.00 level in a convincing bullish drift that started in December 2017. Markets are pricing in normalisation from the ECB but the yen has caught a recent safe haven flow bid with stock markets correcting on inflationary concerns. Today, Wall Street is once again selling off. The Dow, -2.46% has made a low of 24841.80 and the S&P is down -1.86% a low of 2695.33 on today's session as we draw towards a close. 

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY has eroded the 136.62 recent high and the 137.18 downtrends from 1981 (we have seen a weekly close above here but only just!). 

"The market recently sold off to and bounced from the 55-day ma at 134.35 and the 5-month uptrend at 133.97, while underpinned here it will remain bid. The move above 137.20 targets the 139.94/140.00 2008-2018 resistance line," the analysts explained.