EUR/JPY regains poise, moves above 131.00

• Yen drops in Asia despite losses in the equities. 
• EUR/JPY is back above 131.00, the daily chart shows bullish price-RSI divergence. 

The Japanese Yen is losing ground across the board in Asia, despite the overnight drop in the US equities and the risk-averse Asian stocks. 

Consequently, EUR/JPY is on the rise, now trading at a session high of 131.16. The US stocks traded on a shaky ground yesterday, courtesy of the decline in the tech stocks. The Dow Jones Industrial Average (DJIA) fell 1.4 percent, while the S&P 500 shed 1.7 percent. Also, the tech-heavy Nasdaq Composite Index dropped 2.9 percent. 

Meanwhile, the Shanghai Composite index has dropped 0.4 percent and stocks in Australia and New Zealand is down 0.5 percent and 1 percent, respectively.  Further, Japan's Nikkei index is reporting 1.48 percent drop. So, the drop in the Yen is somewhat surprising. 

That said, North Korea developments and attempts to end a potential scandal in Japan are risk-on developments and could be keeping the Japanese currency under pressure. The European data docket is empty, hence the pair is at the mercy of the broader market sentiment. 

EUR/JPY Technical Levels

A break above 131.38 (Monday's high) would open up upside towards 131.91 (200-day MA) and 132.02 (March 6 high). On the other hand, a move below 130.58 (session low) could yield a pullback to 130.35 (5-day MA) and 130.00 (psychological level).