EUR/JPY Recovery Stalls Just Below 122 Handle
The EUR/JPY cross failed to sustain the recovery and fell back in the red as the JPY bulls fought back control across the board amid mixed sentiment prevalent in the markets.
EUR/JPY eases-off highs
The EUR/JPY pair drops -0.20% to 121.72, fading a spike to 121.90 levels last hours. The EUR/JPY cross keeps the offered tone intact in early European trading as the USD/JPY stalled its rebound and falls back to test 107 handle as risk conditions remain poor, boosting the safe-haven bids for the yen.
However, further downside appears limited as the EUR/USD pair climbs towards Tuesday’s highs and helps keep the cross underpinned.
Calendar-wise, we had the Japanese Q1 GDP revision, which showed that the economy expanded 0.5% q/q in Q1, coming in slightly better than the 0.4% reading seen previously. Next of note for the cross remains the US JOTLS jobs data for fresh cues.
EUR/JPY Levels to consider
The pair has an immediate resistance at 122/122.20 (round number/ 10-DMA) and from there to 122.64/70 (20-DMA/ Jun 7 High). On the flip side, support is seen at 121 (psychological levels) below which it could extend losses to towards 120.75 (Multi-year low).