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Market watchers don’t seem to be buying into the recent stimulus efforts being unveiled, so risk-off flows might still keep favoring the yen.

Currency Snapshot:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Swiss SECO economic forecasts at 7:45 am GMT
  • Swiss trade balance at 8:00 am GMT
  • SNB monetary policy decision at 9:30 am GMT

What to Watch: EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

The ECB recently announced a fresh batch of bond purchases in order to stem the coronavirus rout, giving the shared currency a reason to rally against the safe-haven yen.

However, as with most stimulus announcements these days, investors don’t seem to be convinced that these emergency efforts can do much help. After all, most of the assistance is targeted towards lending or businesses which won’t really pick up unless the outbreak is contained.

EUR/JPY is approaching the top of its range visible on the 1-hour time frame and could turn upon hitting the resistance. If so, the pair could retreat to the bottom of the range near the 117.00 handle next.

EUR/JPY 1-hour Forex Chart
EUR/JPY Volatility from MarketMilk

Just make sure you take note of the the average daily EUR/JPY volatility when setting stops and targets!