EUR/JPY firmer, flirting with daily highs around 124.50

The leg lower in the cross met support near the 124.00 handle.
Rebound in EUR helps the cross reverse the down move.
US Q1 GDP next of relevance in the day.

Pablo Piovano FXStreet

The ongoing recovery in the shared currency coupled with the somewhat sidelined trading in the Japanese safe haven has lifted EUR/JPY from the area of recent lows in the boundaries of 124.00 the figure recorded during early trade.

EUR/JPY now focused on US data, sentiment

After three consecutive daily pullbacks, the cross is now posting decent gains in the mid-124.00s, as the European currency appears to have found some buying interest following the recent sell off.

The earlier retracement in the cross to fresh 4-week lows in the 124.00 neighbourhood has been on the back of the persistent deterioration in the sentiment surrounding the riskier assets and the negative impact of poor data releases in Euroland on the single currency.

Later in the session, the first revision of US Q1 GDP is posed to rule the mood in the global markets for the reminder of the day. Second in relevance today, the final U-Mich index will also be in the pepiline.

EUR/JPY relevant levels

At the moment the cross is gaining 0.19% at 124.54 and faces initial hurdle at 125.50 (55-day SMA) followed by 126.80 (high Apr.17) and finally 127.50 (2019 high Mar.1). On the flip side, a breach of 124.08 (low Apr.26) would aim for 123.65 (low Mar.28) and then 123.39 (low Jan.15).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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