EUR/JPY Turns Flat, Reclaims 124.00 Level
The EUR/JPY
pair witnessed a sharp up-move in the last hour, lifting the pair back
above 124.00 handle to currently trade at 124.20, nearly unchanged from
yesterday's close.
Earlier on Wednesday, the pair dropped to
123.60 on global risk-off sentiment that boosted the safe-haven appeal
of the Japanese currency. As day progressed, renewed buying interest
assisted the pair to move back to its immediate resistance marked by
23.6% Fibonacci retracement level of 132.30-121.68 downfall, near
124.20-30 region, also coinciding with a short-term ascending trend-line
resistance.
Wednesday's recovery is over and above the pair's
strong moves on Monday and Tuesday. The pair was benefited from Forex
market intervention comments, should the Japanese currency strengthens
further, by Japan's finance minister Taro Aso. Hence, a follow through
strength above 124.20-30 confluence resistance would open room for
further recovery for the pair in the near-term.
Technical levels to watch
Beyond
the 124.20-30 immediate resistance, the pair seems to immediately dart
towards 50-day SMA resistance near 124.80 level, which if conquered
should continue boosting the pair towards its next major resistance near
126.00 handle, nearing 38.2% Fibonacci retracement level.
Conversely,
should the pair fail to clear its immediate hurdle and drops back
124.00 handle, day's through near 123.60 level might extend some
immediate support. Below 123.60, the pair could easily drop back below
123.00 level.
