FxWirePro: EUR/JPY slumps below 200H MA support amid risk-off, upbeat Eurozone Sentix Investor Confidence fails to provide any respite

EUR/JPY chart - Trading View 

EUR/JPY slumped below 200H MA as the pair was extending the bearish gap open.

The pair was trading 0.35% lower on the day at 126.58 at around 10:00 GMT, scope for further weakness.

Eurozone’s investor morale jumped more-than-expected in January, the latest data published by the Sentix research group showed on Monday. But the single currency was unimpressed.

The relentless advance of the coronavirus pandemic in the region poured cold water over expectations of a strong recovery.

The Eurozone Sentix Investor Confidence came in at 1.3 in January from -2.7 in December beating a reading of 0.7 expected. 

The expectations index rose to an all-time high of 33.5 from 29.3. While the current situation index came in at -26.5, its highest level since March and compared to -30.3 in December.

The upside momentum in EUR/JPY ran out of steam in the 127.49 area. CFTC Positioning Report showed JPY net longs hit the highest level since early October 2016. 

Price has slipped below hourly cloud and 200H MA. Test of 21-EMA support at 126.35 likely. Violation there could see dip till 200W MA.