EUR/JPY losing its legs towards key 20-D MA

• EUR/JPY: struggles higher with key resistance ahead.
• EUR/JPY: US stocks weigh on the crosses advance.

EUR/JPY is off its highs but looking robust with intermarket demand given the improved risk appetite with Wall Street yesterday and EUR/USD now better bid with traders buying the dip. Currently, EUR/JPY is trading at 131.62, up 0.49% on the day, having posted a daily high at 132.04 and low at 130.60.

The dollar was beaten up on headlines that North Korea willing to freeze its nuclear program in exchange for guarantees of safety for its communist regime leading to EUR/JPY demand on shorts were covered with EUR/USD spiking to a new recovery high at 1.2391 and the biggest gain in a month in the DE 10yr bond yields. 

Intermarket analyses

As for USD/JPY, the bid was driven back from 106.40 area and ahead of the 106.48 Fibonacci level where bulls were stymied despite the abating trade war risks. 105.80/00 is holding for the time being as DXY bases at 89.50 in its decline while US yields base down at 2.8582%.

USD/JPY retreats to 106.00 as US bonds recover

However, US stocks are not doing so well on Tuesday and this should cap any further progress in the cross. DJIA late-morning dropped heavily on the back of declines in heavyweights Boeing Co., and UnitedHealth. The Dow was most recently off 114 points, or 0.44%, at 24,766.45 at the time of writing.  

EUR/JPY levels

Analysts at Commerzbank explained that EUR/JPY there is tough resistance at 132.06 20 day ma. "It will need to regain here in order to alleviate immediate downside pressure and allow for a recovery to last week’s high at 132.18 as well as the high from the 21st February at 133.06 and the 55 day ma at 134.08."