EUR/JPY: Bulls in Command, 124 Back on Sight
The persisting risk-on market profile boosted the risk currency US dollar across the board, aiding the recovery in EUR/JPY for the second straight session.
EUR/JPY supported at hourly 100-SMA at 123.52
The
EUR/JPY pair jumps 0.51% to trade near fresh session highs of 123.80,
bouncing-off a brief dip to 123.52, session lows. The ongoing retreat in
the Japanese currency from 12-month peaks against the US dollar
continues to boost the sentiment around the EUR/JPY cross.
Moreover,
the Asian stocks rally fuels risk-on moods across the financial markets
and underpins the demand for the higher-yielding/ risk currencies at
the expense of the safe-havens such as the yen and euro. However, the
losses in the yen versus its American counterpart outweigh the prevalent
EUR/USD weakness, thus, supporting bullish tone in the cross.
EUR/JPY Levels to consider
The
pair has an immediate resistance at 124/124.06 (round number/ daily R1)
and from there to 124.53/125.02 (10-DMA/ 1h 200-SMA). On the flip side,
support is seen at 123 (Mar 9 March low) below which it could extend
losses to towards 122.40 (Feb 24 & 29 Low)
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