EUR/JPY stages a minor recovery, retakes 120.00 mark
|Following Friday's slump to multi-day lows, the EUR/JPY cross staged a minor recovery bounce on Monday and move back above 120.00 psychological mark.
Currently trading around 120.10-15 region, today's disappointing Japanese trade balance data, coupled with a slight improvement in investors' risk-appetite, which tends to dent the Japanese Yen's safe-haven demand, helped the cross to bounce of 119.75-70 support area. Adding to this, a modest recovery witnessed around the EUR/USD major further supported the pair's recovery back beyond 120.00 handle.
Looking at the technical picture, the cross on Friday confirmed a breakdown through 6-day old trading range and hence, any recovery attempts might get sold into near the trading range support break-point turned resistance near 120.25-30 region.
Technical levels to watch
A sustained recovery back above 120.25-30 resistance has the potential to lift the cross back towards 121.00 hurdle, which if cleared would negate any near-term bearish bias and pave way for continuation of the recovery move further towards 121.40-50 horizontal resistance.
On the flip side, decisive break below 119.75-70 support would confirm the break down and might drag the cross below Feb. monthly lows support near 119.50 region towards testing 100-day SMA support near 119.15-10 region.
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