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.