EUR/JPY continues to stumble lower, now searching for 133.00

• EUR/JPY sliding again as markets retreat.
• Yen gaining across the board on positive US data.

EUR/JPY couldn't stand up to the pressure and fell again against the Yen yesterday, currently trading near 133.10 in the overnight session and continuing to sink. 

Equities are down and the Yen is gaining as risk aversion continues to dominate this week, with surprisingly upbeat data from the US sending traders into safe haven assets, once again, as inflation fears rise on good data, and bond yields spike as equities and commodities continue to trade on their back foot.

With yesterday's tumble for EUR/JPY, the pair in now trading at a four-week low, and as economic data from the US continues to improve, risk-off twitches from global markets can be expected to continue, despite the fact that many central banks around the world seem hestitant to even begin pulling the trigger on rate increases until well into next year. Traders may be jumping the proverbial gun where risk appetite is concerned, digging themselves a rate-rise hole before rates even come close to beginning to increase.

EUR/JPY Technicals

There may be a floor pricing in, with the 133.00 psychological level currently acting as support, while a move back up the charts will meet resistance at 133.72; long-term technicals look slightly healthier, with EUR/JPY trading below the 34-day EMA but still above the 200-day SMA, which has some strong bullish motivation behind it, with the Euro overall gaining against the Yen since April of 2017. Despite that, this week is still shaping up to be one of the pair's biggest losers in recent history unless the Euro and market risk appetite buckle down and finish the week strong.