EURJPY drops to two-month low as traders migrate to safety on fresh risk aversion
The cross accelerates lower (down 0.95% since opening in Asia) as worsening conditions with Covid-19 and signs that UK government considers second lockdown, slashed risk appetite on Monday and boosted demand for safe-haven yen.
Fresh fall emerged below the base of ascending and thickening daily cloud (123.03), hitting two-month low (122.58) and focusing next pivotal supports at 122.27/11 (Fibo 61.8% of 119.30/127.07 / rising 100DMA).
Break below daily cloud was strong bearish signal (which needs confirmation on daily close below cloud base) reinforced by daily Tenkan-sen/Kijun-sen (in bearish setup) turning south.
Strong bearish momentum contributes to negative outlook, with clear break of 122.27/11 pivots to risk extension towards 200DMA (120.85).
Res: 123.03; 123.31; 123.93; 124.10
Sup: 122.58; 122.27; 122.11; 121.82