EUR/JPY: Upside Capped Near 123.10, Awaits Fresh Impetus
The EUR/JPY
cross failed to sustain above 123 handle yet again and met fresh
supply, now sliding to fresh session lows ahead of 5-DMA located at
122.58.
EUR/JPY drops on broad euro strength
The
EUR/JPY pair now drops -0.17% and hovers within a striking distance of
fresh session lows of 122.70. The cross in the EUR/JPY fell back in the
red zone as the European currency extends its downward spiral versus it
American counterpart amid renewed demand for the US dollar ahead of the
US unemployment claims data, scheduled for release later in the NA
session.
However, the losses remain capped as the yen remains
broadly weak on the back of an improved risk tone on rallying oil
prices. Meanwhile, in absence of economic news from the Euro land
towards the latter part of this week, focus now remains on the key US
jobs data due tomorrow.
EUR/JPY Levels to consider
The pair has an immediate resistance at 123.13/123.48 (daily high/ 10-DMA) and from there to 124 (round number). On the flip side, support is seen at 121.80/77 round number/ May 2 low) below which it could extend losses to towards 121.63 (3-year low).
