EUR/JPY struggles for direction below 124.00

Pablo Piovano FXStreet

After bottoming out in the mid-122.00s on Thursday, EUR/JPY has managed to regain some upside bias and is now testing the 123.70/80 band.

EUR/JPY up on risk-on trade

The risk-on sentiment now seems to prevail in the global markets, accentuating the offered bias around the safe haven JPY and lifting the cross to the vicinity of the key 124.00 handle.

Adding to the ongoing correction higher, the selling mood around the greenback is helping to sustain the demand for EUR and the rest of the risk-associated peers.

Recall that the cross clinched fresh multi-month tops in the boundaries of 126.00 the figure earlier in the week, although the irruption of risk aversion forced it to recede to 2-week lows near 122.50 during yesterday’s session.

In the data space, nothing worth mentioning in Japan, while EMU’s Current Account and speeches by ECB’s Board members V.Constancio and P.Praet are expected in the euro bloc.

EUR/JPY relevant levels

At the moment the cross is up 0.01% at 123.79 facing the next resistance at 124.14 (high May 18) followed by 124.86 (38.2% Fibo of 149.76-109.47) and finally 125.83 (2017 high May 16). On the downside, a breach of 122.99 (20-day sma) would expose 122.52 (low May 18) and then 120.82 (100-day sma).

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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