EUR/JPY: headed to March 8th low at 130.53?

• EUR/JPY: recovers from the initial piercing of the 200-hr SMA at 131.22.
• EUR/JPY: risk-off pressures yen crosses.

EUR/JPY had pierced below the 200-hr SMA at 131.22 and is currently trading at 131.47, down -0.43% on the day, having posted a daily high at 132.31 and low at 131.02.

US stocks have been dragging on risk-on pairs and the yen has picked up a safe-haven bid, testing the descending resistance/support line around 106.10 with a fresh 7 day low printed. There has been a series of headlines today that is weighing on risk sentiment and a downgrading of GDP estimates for the US economy taking into count the recent data disappointments that are all well below the 3% target and previous projections.

The GDPNow model estimate below now 2%

The Dow Jones reported that the White House is looking for a $100 Billion deficit reduction with China and ho it seeks to implement tariffs of $60B of goods from China. This has impacted the stock markets with shares of Boeing are already down -3.98% on the back of such concerns for example. In earlier trade, German Chancellor Merkel was reported saying that she is 'not sure if Europe can win exemption from us tariffs". Meanwhile, Goldman Sachs coming in with an estimate now down to 2% from 2.5% and the Atlanta Fed dropping from Friday's 2.5% to 1.9% after retail sales missed estimates by 0.2%.

EUR/JPY levels

Minor support below the 200 day moving average was broken and the March 8 low at 130.53 now comes into focus on a break below the 10-D SMA at 131.09. Analysts at Commerzbank argued the case for a run to the current March low at 129.35 and of which unexpected failure of which would push the August low at 127.57. On the flipside, the analysts note the January low and February 21 high at 133.05/09 and the 55 day moving average at 133.76.