EUR/JPY extends recovery above 123.50 as yen retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The European currency reverses a part of yesterday’s losses against its Japanese counterpart in early Europe, driving EUR/JPY above 123.50 levels.

    EUR/JPY rises above 5-DMA at 123.31

    The EUR/JPY pair advances 0.35% to fresh session highs of 123.57, having found good support near 123.15 region. The bulls fought back control in Asia and now pushes EUR/JPY higher ahead of Europe open, mainly driven by the ongoing weakness in the Japanese currency versus the greenback, as the yen corrects heavy gains booked yesterday.

    On the other hand, the EUR/USD pair trades largely muted above 1.14 handle, providing little help to the EUR/JPY recovery from below 123 handle. Markets now look forward to the German final CPI and WPI figures for fresh impetus ahead of import prices data lined up for release in the US session.

    EUR/JPY Levels to consider

    The pair has an immediate resistance at 124/124.21 (round number/ daily R2) and from there to 124.86/125.41 (10-DMA/ 1h 200-SMA). On the flip side, support is seen at 123 (Mar 9 March low) below which it could extend losses to towards 122.40 (Feb 24 & 29 Low)
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