EUR/JPY: Second fiddle – Rabobank

The downtrend in EUR/JPY reasserted itself in April after a choppy period from mid-February through to the end of March, as economists at Rabobank note. 

Key quotes

“The USD may have stolen the crown as the safe-haven currency of choice in this crisis. However, the JPY has still outperformed the dollar in the year to date and remains particularly sensitive to risk events in Asia, such as rumours regarding the leadership in North Korea or tensions in the South China Sea.”

“We continue to see scope for EUR/JPY to edge lower towards 113.4 on a 3-month view, although the EUR/JPY 115.5 area will likely offer support.”