The safe-haven yen ticked higher this morning as Asian markets slumped on a fast-spreading deadly virus in China and amid broader market uncertainty over the proceedings at Davos. The EUR/JPY edged sharply lower, and as global bourses look set for more declines the pair is set to remain on a SELL trend. The euro is meanwhile locked in a narrow range before a European Central Bank (ECB) meeting on Thursday where it is expected to launch a comprehensive review of its strategy and inflation target.
Markets could go lower this week especially with a weaker stock market and a further rush to safe havens.
Technicals point to a correction in the charts with a bearish reversal.
Sell stop “we like to be short at” 121.90 with SL at 122.70 and TP at 121.10