JPY crosses/Technical Analysis

EUR/JPY intraday update: Lower on risk aversion as Italian bank stocks crash

10-year Italian bond yields are around 25 bps higher and bank stocks are around 6% lower, both of which are bearish signals for EUR/JPY. Recent positioning reports have JPY shorts at extreme levels, and with the general election only 6 days away, its also no surprise to see some Yen short-covering taking place.

All of this means that EUR/JPY is lower intraday, down from a NY closing level near 106.65 and targeting a daily low at 105.30.

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