What seems too high and risky to the majority generally goes higher and what seems low and cheap generally goes lower.
The shared currency consolidated around $1.0860 in a failed attempt by the EU Finance Ministers to deliver the coronavirus economic rescue stimulus reportedly due to a persistent stand-off between southern European states like Italy and fiscally conservative states like the Netherlands.
The Cable soared to $1.2415 amid a more upbeat market mood as UK Prime Minister Boris Johnson's condition has improved after the third night in intensive care.
The yen sidelined around 108.90 against the greenback despite reports from central bank Governor Kuroda that the coronavirus pandemic hit output and consumption, stressing his readiness to take additional monetary steps to prevent a deep recession.
The Aussie vaulted to $0.6218 after the Reserve Bank of Australia announced that the country's lenders have entered the downturn with high profitability and "very good" asset performance in its biannual Financial Stability Review.
The South African's rand rallied to 18.18 per dollar benefiting from hopes the coronavirus pandemic is peaking.
The pair steadied at Rs39.75/USD(selling) ahead of Good Friday and Easter Monday holidays in some major markets.
• After rallying to the downside from a high of 112.22 to 101.17 amid global pandemic threat, USD/JPY has been in a correcting mode since 9th March 2020 and seemed to have recently completed an W-X-Y Double Zig-Zag structure of Wave (2) reaching a high of 111.64 on 27th March 2020.
• Two strong indicators were flashing a trend reversal: ending diagonal at Wave 5 of Wave c and bearish RSI divergence.
• On the hourly chart, as per Elliott Wave analysis, the pair might resume its downwards trend targeting 100.64 - 93.78 to unfold Wave (3), a projection of 100%-161.8% of Fibonacci level.
• USD/JPY is percolating towards its target from 110.41 to 107.84, as per chart below.
• On a side note, resumption of a bullish USD/JPY would mark an invalidation of the Elliott Wave structure above 112.22
The Single currency plunged to a low of $1.0771 last week, before trimming back some losses to $1.0825 this morning, as safe-haven demand boosted the U.S dollar higher across the board.
On a technical perspective, the EUR/USD appears to be tracking the bearish Head & Shoulders (H&S)pattern highlighted last week.
The H & S neckline, as illustrated on the 10 mins chart, could possibly act as magnet in the coming sessions that would propel the EUR/USD higher near $1.0850/75.
However, the pair still remain vulnerable to further downside possible near $1.0700 (H &S target level).