EUR/JPY Reverses a Dip to 123, EZ GDP in Focus

EUR/JPY Reverses a Dip to 123, EZ GDP in Focus

13 May 2016, 11:41
Roberto Jacobs
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EUR/JPY Reverses a Dip to 123, EZ GDP in Focus

The EUR/JPY cross stalled its downslide and bounced-off lows just ahead of 123 handle as risk sentiment appears to recover amid a minor-bounce seen in the European stocks.

EUR/JPY jumps-off 4-day lows

The EUR/JPY pair now drops -0.53% to 123.39, recovering from a brief dip to 123.06, fresh four-day troughs. The cross in the EUR/JPY trims losses and now looks to regain 20-DMA located at 123.60 as the selling in both the EUR/USD and USD/JPY appear to have halted and therefore, providing some respite to the cross.

Moreover, risk-off moods eased a bit over the last hour as the European stocks recovered losses, which also aided the recovery in EUR/JPY. The immediate focus now remains on the Eurozone flash GDP data due out shortly, which may provide fresh impetus to the EUR.

EUR/JPY Levels to consider

The pair has an immediate resistance at 123.60/124 (20-DMA/ round number) and from there to 124.68 (50-DMA). On the flip side, support is seen at 123.06/00 (Daily low/ round number) below which it could extend losses to towards 121.88 (May 9 Low).


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