EUR/JPY attacks 120 amid China trade-led risk-off

Risk-sentiment sours following the release of shocking Chinese trade data, which boosted the safe-haven bids for the yen and sent EUR/JPY sharply lower to test 120 handle.

EUR/JPY: 10-DMA at 120.02 tested

The EUR/JPY pair now drops -0.32% to 120.09, hovering close to 3-day lows struck last minutes at 120.02, where 10-DMA intersects. The cross extends its losing streak into a third day today as the yen bulls remain in command amid prevalent risk-off environment, intensified by China’s trade deficit shock. Poor Chinese trade data reinforced China slowdown concerns back into markets and rattled investors’ confidence.

Meanwhile, the EUR/USD pair trades largely subdued amid a lack of fresh fundamental drivers and muted treasury yields, providing little support to the cross in EUR/JPY. Moving on, focus now remains on the German industrial production and US ADP jobs data due later on Wednesday.

EUR/JPY: Technical Levels

Higher side: 120.52/61 (daily pivot/ 5-DMA), 120.92/99 (50 & 100-DMA)

Lower side: 119.87/81 (Mar 2 low/ Classic S3), 119.50 (zero figure/ Feb 21 low)