EUR/JPY Reverses a Dip to 123, EZ GDP in Focus
The EUR/JPY cross
stalled its downslide and bounced-off lows just ahead of 123 handle as
risk sentiment appears to recover amid a minor-bounce seen in the
European stocks.
EUR/JPY jumps-off 4-day lows
The EUR/JPY pair now drops -0.53% to 123.39, recovering from a brief dip
to 123.06, fresh four-day troughs. The cross in the EUR/JPY trims
losses and now looks to regain 20-DMA located at 123.60 as the selling
in both the EUR/USD and USD/JPY appear to have halted and therefore,
providing some respite to the cross.
Moreover, risk-off moods eased a bit over the last hour as the European
stocks recovered losses, which also aided the recovery in EUR/JPY. The
immediate focus now remains on the Eurozone flash GDP data due out
shortly, which may provide fresh impetus to the EUR.
EUR/JPY Levels to consider
The pair has an immediate resistance at 123.60/124 (20-DMA/ round
number) and from there to 124.68 (50-DMA). On the flip side, support is
seen at 123.06/00 (Daily low/ round number) below which it could extend
losses to towards 121.88 (May 9 Low).
