EUR/JPY: Sell-Off Extends Towards 123 ahead of ECB Minutes
The EUR/JPY
cross is currently experiencing some fresh selling, as the downward
pressure intensifies on both the EUR/USD pair as well as on USD/JPY.
EUR/JPY eyes 123
The EUR/JPY pair now drops -0.36% to fresh daily lows of 123.03, having
faced strong offers near 123.60/65 band. The cross in the EUR/JPY
accelerates losses and now looks to test 123 handle on the back of
renewed weakness in the EUR/USD pair, with the prices now testing 1.12
barrier.
Also adding to the bearishness around EUR/JPY, the Japanese currency
rebounds sharply against the US dollar as a renewed risk-aversion wave
gripped Europe and led the investors to seek safe-havens such as the
yen. While markets ignored directionless trading seen in the US dollar
against its major competitors.
The immediate focus now remains on the ECB April 21 monetary policy
meeting ahead of the US unemployment claims and Philly Fed manufacturing
index due later in the NA session.
EUR/JPY Levels to consider
The pair has an immediate resistance at 124/124.18 (round number/ May 17
High) and from there to 124.36 (50-DMA). On the flip side, support is
seen at 123/122.96 (round number/ May 18 low/) below which it could
extend losses to towards 121.88 (May 9 Low).
