EUR/JPY Fades a Spike to 123.20 as Risk-off Seeps Back
The retreat in the Asian indices back towards monthly lows, particularly
the Japanese stocks, boosted the JPY bulls and drove the yen crosses
lower across the fx board.
EUR/JPY capped by daily R2
The EUR/JPY pair
now trades +0.18% higher at 123.05, retreating from session tops
previously posted at 123.22. The cross in the EUR/JPY pares gains as the
USD/JPY pair paused its upbeat momentum and receded lower in tandem
with moves witnessed in the Japanese benchmark index, the Nikkei 225.
Although the cross managed to regain 123 handle as a sudden spurt of
buying interest seen in the EUR/USD pair helped keep the downside in
check. Ahead in the day, low volumes and limited volatility is expected
as most major European markets remain closed in observance of Whit
Monday holiday.
EUR/JPY Levels to consider
The pair has an immediate resistance at 123.33/41 (5 & 20-DMA) and
from there to 124.52 (50-DMA). On the flip side, support is seen at
122.87/74 (Daily Pivot/ S1) below which it could extend losses to
towards 122.62 (May 16 Low).
