EUR/JPY: nosedives on heightened trade war angst, 131.20 sticky

EUR/JPY took a dive in early Asia just ahead of Tokyo in a sike of trade war angst with headlines that Trump asked his Treasury department to examine another 100B in tariffs against China, according to a statement from the White House Press Secretary's office - EUR/JPY dropped from 131.49 to 131.08.

• Trump tells Treasury to consider another 100B in China tariffs - White House

Currently, EUR/JPY is trading at 131.25, down -0.11% on the day, having posted a daily high at 131.52 and low at 131.09. The yen's two-way business continues as traders try to keep up with the trade war developments. USD/JPY dropped back to test the 107 handle on the headline as well in some final action before markets get set for the US jobs data tonight. 

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EUR/JPY levels

EUR/JPY seems to be caught up around 131.20 in a phase of consolidation with the hourly technicals neutral and price above the 21 and 10-D SMAs crossing up. On the downside, "the recent low at 128.96 was accompanied by a large divergence of the daily RSI and we suspect that we have based there," analysts at Commerzbank explained. On the flipside, and on the wide, comes the 200-D SMA at 132.10. "Resistance above the 200-day ma comes in at the 132.43/47 current March high and Fibonacci retracement. If bettered, the January low and February 21 highs at 133.05/09 would be on the cards together with the 134.25/61.8% retracement," analysts at Commerzbank added.