EURJPY TECHS: Northbound

Today’s sharp sell-off in precious metals is extending. Spot gold is now down over 5% on the session at $4,120/oz, quickly narrowing the gap to key support at $4,021.6, the 20-day EMA. Today’s weakness, which doesn’t have an obvious fundamental trigger, is allowing an overbought condition (on a 14-day RSI basis) to swiftly unwind.

• Spot silver is down over 7.5% at typing, further reversing last week’s liquidity squeeze. Initial support at the 20-day EMA ($49.089) has been pierced. Palladium and platinum are also down 6-7%.
• Worth noting that today’s moves are largely isolated to precious metals. Major cryptocurrencies (Bitcoin, Ethereum) are lower on the session but to a much lesser extent (1-2%).
• This supports the idea that today’s moves are flow/momentum driven, with profit-taking/long cover at play after an extremely impressive rally since August. 

• EUR/USD: $1.1525(E732mln), $1.1595-00(E1.1bln), $1.1620-25(E586mln), $1.1640-50(E750mln) $1.1810-30(E1.1bln)
• USD/JPY: Y149.90-00($1.5bln), Y151.00($876mln), Y152.00($1.1bln)
• EUR/GBP: Gbp0.8740(E498mln)
• AUD/USD: $0.6535(A$516mln)
• NZD/USD: $0.5700(N$1.2bln)
• USD/CAD: C$1.3800($1.9bln), C$1.4085($551mln), C$1.4200($1.1bln)
• USD/CNY: Cny7.3000($749mln)

EURUSD (6th Mar) 1.1800c, bought for 0.01410 in ~2.2k.