We recommend to pay attention to the dynamics of a pair EURJPY. Since the beginning of the week the European currency against the yen lost about 100 points, and crept close to the 119.24 support. Last time this level was tested in November 2019, however, attempts to push the pair below the sellers did not come to fruition. This time, the situation may change. The euro continues to be under pressure from weak statistics, as well as a general reluctance of traders to take risks against the backdrop of the spread of coronavirus infection.
The authorities of Hubei Province, China confirmed 14 thousand. New cases of coronavirus infection (the virus COVID-19) after the introduction of the new methodology for determining the disease. In addition, the number of deaths from the virus infection has reached 242 people in recent days. The total number of victims amounted to 1369 people. Recall that the previous maximum number of deaths have been reported in the Monday, February 10, while the State Commission on Public Health reported 103 cases of death. Accelerating the spread of the virus has returned to the market concerns over the prospects for global economic growth, triggering a reallocation of capital in favor of the defense of the dollar, yen, Swiss franc and US bonds.
With regard to European statistics, published yesterday, data on industrial production in the euro area, as expected, confirmed the decline in the sector. In particular, in annual terms, industrial production of the EU countries dipped by 4.1%, thus bringing the date of the additional monetary stimulus by the ECB. Taking this into account, the EURJPY keeps the potential for movement below 119.00.
EURJPY SellStop 119,30 TP 117,25 SL 119,90
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets . Traders community is not responsible for any losses in the case of the review of materials
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