EUR/JPY Halts 2-Day Sell-off, Regains 122 Handle

EUR/JPY Halts 2-Day Sell-off, Regains 122 Handle

2 May 2016, 07:56
Roberto Jacobs

EUR/JPY Halts 2-Day Sell-off, Regains 122 Handle

The EUR/JPY battering seen last week appears to stall this Monday, with the JPY bulls having taken a backseat ahead of the key US NFP release.

EUR/JPY moves-off 3-year low

The EUR/JPY pair now gains 0.12% to 122.09, retreating from near multi-year troughs reached at 121.63 last Friday. The bulls breathe a sigh of relief after last week’s extensive sell-off; largely on the strengthening EUR/USD pair as US dollar continues to slide amid falling odds of a Fed rate hike this June/July.

Also, a minor corrective mode seen in the Japanese yen against its American counterpart this Monday added to the upbeat sentiment around EUR/JPY.

Meanwhile, markets now look forward to a raft of final manufacturing PMI reports from across the Euro area economies for fresh incentives on the cross.

EUR/JPY Levels to consider

The pair has an immediate resistance at 122.50 (psychological levels) and from there to 122.97/123 (Apr 29 High). On the flip side, support is seen at 121.80/77 round number/ daily low) below which it could extend losses to towards 121.63 (3-year low).


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