EUR/JPY drops to 1-hour 50-MA on risk aversion

EUR/JPY fell to 1-hour 50-MA level of 124.79 in early Asia as heightened political uncertainty in the US strengthened the bid tone around the Yen. 

Hovers around 125.00

The cross was last seen trading around the psychological level of 125.00. The 1-hour 50-MA continues to slope upwards and could offer support at 124.85 levels. 

The NY Times reported earlier today that US President Donald Trump asked then-FBI Director James Comey in February to drop the investigation into Michael Flynn. The memo written by Mr. Comey shortly after the meeting at an Oval Office in February confirms the same. The documentation is the clearest evidence of Trump directly influencing the Justice Department and F.B.I. investigation. 

The resulting risk-off is keeping the pair under pressure. The pair may suffer further losses if the European stocks drop. 

EUR/JPY Technical Levels

The daily RSI is overbought and the MACD shows the loss of bullish momentum. A break below 124.85 (1-hour 50-MA) would expose 124.33 (1-hour 100-MA) and 124.00 (zero levels). On the higher side, immediate resistance is seen at 125.20 (1-hour 10-MA) ahead of 125.57 (hourly chart resistance) and 125.81 (recent high).