EUR/JPY halts decline in risk-off markets, lifts ahead of Europe

• EUR/JPY falls in risk-off markets.
• Decline halted as Euro firms, Yen recedes.

EUR/JPY has rebounded after plummeting early in the Tokyo session and has clawed its way back to just beneath 107.50 after reaching a low of 107.15. 

Risk aversion on the back of the FOMC's positive outlook on the US economy and increased expectations for inflation growth sent markets into full risk-off mode Wednesday, with equities closing lower and safe haven assets such as the Yen gaining on the day.

The Bank of Japan's continuous rhetoric talking down markets in the face of a strengthening Yen appears to be having an effect, as the Yen is beginning to release its vice-grip on currency pairs following frequent bouts of risk aversion that plague the markets.

EUR/JPY Technicals

The Euro's recent gain against the Yen has sent the pair back up, but the underlying trend is still steeply bearish, with the price still trading far below the 34 EMA and the 200-day SMA; Support is priced in at 106.83 and 106.17, and resistance is piling up from 107.89 and 108.48.