EUR/JPY Fast Approaching 120.00 Psychological Mark
Bears tightened their grip on the EUR/JPY cross as the pair has dropped back below 121.00 handle and gradually heading towards 120.00 psychological mark.
Global risk-aversion boosted the safe-haven appeal of the Japanese Yen on Thursday as European equities extend their slide after opening in the red. Moreover, the upcoming Fed meeting and the UK referendum over the next couple of weeks has also kept traders on the edge.
Adding to it, a sudden turnaround in the EUR/USD major is also contributing to the downward pressure witnessed by the EUR/JPY cross.
Heading into NA session, traders will now confront the release of weekly US jobless claims data for fresh impetus. With both the US Federal Reserve and the Bank of Japan scheduled to announce their monetary policy decisions in the upcoming week, traders will focus on USD/JPY major in order to derive moves for the EUR/JPY cross.
Technical levels to watch
From current levels, break below 120.00 psychological mark is likely to accelerate the fall further towards testing Feb.-April 2013 lows support near 119.00 handle. With daily RSI still reading well above oversold territory, the pair seems more likely to break through 119.00 support and test sub-118.00 level.
Meanwhile on the upside, previous strong support near 121.70-75 might now act as immediate resistance, above which the pair might stage a minor recovery beyond 122.00 level, initially towards 1225.50 and eventually towards 123.00 round figure mark.