- EUR/JPY reverses two sessions with losses, looks to 123.00.
- The cross met decent support near the 122.00 handle.
- Improved risk-on sentiment helps the cross.
The better mood in the risk-associated space is now helping EUR/JPY to leave the area of daily lows and re-focus its attention to the 123.00 barrier.
EUR/JPY looks to trade for direction
Markets appear quite calmed at the end of the week following yesterday’s volatile session, where sentiment around the greenback was rattled on the back of disappointing results from the housing sector and advanced PMIs for the current month.
The renewed offered bias in the buck triggered some improvement in the riskier assets, lending legs to the European currency and pushing the cross from daily lows in the 122.40 region to the 122.80/85 band, where aligns the 10-day SMA.
In the broader view, concerns on the US-China trade from remain well and sound and are seen as the almost exclusive catalyst of the price action for the foreseeable future.
Nothing interesting from the docket should leave the attention to the ongoing EU parliamentary elections, which results will be published on Sunday.
EUR/JPY relevant levels
At the moment the cross is gaining 0.20% at 122.78 and faces the next up barrier at 123.49 (21-day SMA) followed by 123.75 (high May 21) and finally 124.29 (high May 6). On the other hand, a breach of 122.08 (low May 15) would aim for 120.54 (monthly low Jan.17 2017) and then 118.82 (2019 low Jan.3 ‘flash crash’).
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