EUR/JPY Turns Flat, Reclaims 124.00 Level
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
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.