EUR/JPY Just Managing to Hold 122.00 Level
Extending its sharp slid on Thursday, the EUR/JPY
pair dropped back below 122.00 on Friday before witnessing a minor
bounce off day's through to currently trade just above 122.00 mark.
The
122.00 mark represents key support area, from where the pair managed to
bounce back in late Feb., March and in the previous week. Last week the
pair dropped to a 3-year low and rebounded on news that the Bank of
Japan is considering further stimulus measures to combat inflation and
support its sluggish economy. Hence, a breakdown below the noted 122.00
support area would confirm extension of the pair's bearish trend in the
near-term.
Technical levels to watch
On a
sustained break below 122.00 mark, the pair is unlikely to find any
major support ahead of 120.55-50 area. By that time the momentum could
be strong enough to continue dragging the pair lower towards Feb.-March
2013 lows support near 119.00-118.80 zone.
Meanwhile on the
upside, any attempt of a mild recovery now seems to confront immediate
resistance near 122.45-50 area, closely followed by 123.00 round figure
mark resistance. Only a move back above 123.00 mark might assist the
pair to register additional recovery, possibly beyond 124.00 round
figure mark, to 124.25-30 area.
