We recommend to pay attention to the dynamics of the pair. Since the beginning of the week, the European currency against the yen has lost about 100 points and has come close to supporting 119.24. The last time this level was tested in November 2019, however, sellers' attempts to push the pair below were unsuccessful. This time the situation may change. The euro continues to experience pressure from weak statistics, as well as the general reluctance of traders to take risks against the spread of coronavirus infection. The authorities of the Chinese province of Hubei confirmed 14 thousand new cases of coronavirus infection (COVID-19 virus) after the introduction of a new method for determining the incidence of disease. In addition, the number of deaths from a viral infection over the past 24 hours has reached 242 people. The total number of victims amounted to 1369 people. Recall that the previous maximum number of deaths was recorded on Monday, February 10, then the State Health Commission reported 103 cases of death. Accelerating the spread of the virus has returned to the market fears for the growth prospects of the global economy, provoking a redistribution of capital in favor of a protective dollar, yen, franc, as well as US bonds. As for European statistics, the Eurozone industrial production data released yesterday, as expected, confirmed the decline in the entire sector. In particular, in annual terms, industrial production in the EU countries dipped by 4.1%, thereby bringing the date of additional monetary stimulation by the ECB closer. With that said, the EURJPY pair maintains a potential for movement below 119.00.
EURJPY SellStop 119.30 TP 117.25 SL 119.90
Artem Deev, Head of Analytical Department, AMarkets
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