EUR/JPY gains lost momentum near 126.00

Pablo Piovano FXStreet

The renewed offered bias around the single currency has prompted EUR/JPY to surrender part of the spike to fresh 2017 tops in the 125.80/85 band seen earlier in the week.

EUR/JPY in 3-day lows

The cross has retreated to the area of multi-day lows around 124.80 during the European morning, coincident with the 38.2% Fibo retracement of the 2015-2016 drop amidst a persistent lack of direction around EUR.

On the JPY-side, the safe haven currency found fresh buyers following higher-than-expected results from inflation figures for the month of May measured by the Tokyo CPI, with consumer prices rising at an annualized 0.2% and 0.1% stripping food and energy costs.

Nothing else expected in the data universe today, leaving all the attention to the US releases, where another revision of the Q1 GDP should take centre stage.

EUR/JPY relevant levels

At the moment the cross is losing 0.41% at 124.83 and a breach of 124.52 (low May 23) would expose 124.09 (20-day sma) and then 122.52 (low May 18). On the other hand, the next hurdle lines up at 125.83 (2017 high May 25) followed by 126.50 (high Apr.28 2016) and finally 128.26 (high Mar.31 2016).

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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