EUR/JPY rebounds back above 124.00, holds onto daily losses
- EUR/JPY continues to be limited by 124.50 and 125.00.
- Bullish momentum losses strength, euro back above 124.00.
The EUR/JPY is falling after gaining 150 pips in three days. It peaked on Thursday slightly above 124.50, the highest level in two weeks before turning to the downside. It bottomed at 123.90, a two-day low and then bounced back above 124.00.
The rebound from the low in EUR/JPY found resistance at 124.15/20. It is hovering around 124.15, consolidating a modest daily loss. It is the first decline since the beginning of the week.
A correction in global equity markets pushed the momentum in favor of the yen and against the euro. Still, most currency pairs are moving sideways in modest ranges amid US Holidays.
Equity futures are posting small losses on a day with a light economic calendar. The ECB minutes presented concerns about the economic and inflation outlook for the region and pointed to action in December.
From a technical perspective, the bullish momentum in EUR/JPY lost strength after finding resistance around 124.50. Above that area is the critical 125.00 resistance that capped the upside in October and November. A consolidation above would clear the way to more gains. On the flip side, support levels are seen at 123.55/60, followed by 122.85 and 122.50.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
