EUR/JPY losing the grip, testing 120.00

Pablo Piovano FXStreet

EUR/JPY is trading within a tight range on Tuesday, posting marginal losses albeit clinging to the 120.00 handle for the time being.

EUR/JPY gains capped near 120.40

The cross faded the initial spike to daily highs in the proximity of 120.40, returning to the negative territory although managing quite well to keep the trade above the key 120.00 mark so far.

In the meantime, EUR/JPY is looking to prolong the rebound from last week’s multi-day lows near 119.40 amidst the recent EUR rally and bouts of risk aversion supporting the safe haven JPY.

On the data front, Japanese inflation figures and advanced March CPI results in the euro area will be the salient points ahead in the week, both released on Friday.

EUR/JPY relevant levels

At the moment the cross is losing 0.10% at 120.11 facing the immediate support at 119.50 (low Mar.27) ahead of 119.27 (low Mar.23) and then 118.18 (2017 low Feb.24). On the other hand, a surpass of 120.87 (20-day sma) would expose 122.28 (high Mar.17) and finally 122.89 (high Mar.13).

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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