The upside momentum in EUR/JPY seems to have run out of steam in the boundaries of 121.20 for the time being.
EUR/JPY gains capped around 122.00
After reaching fresh monthly lows in the 122.00 neighbourhood earlier in the week, the cross shed some ground following a renewed offered bias around the single currency, although the bearish note surrounding the safe haven JPY continues to limit the downside.
EUR/JPY surged near 122.00 the figure during the first half if the week in response to a sharp pick up in the risk appetite trends following Sunday’s elections in France. The bull run, however, fizzled out somewhat since then, finding some decent support in the 120.60/50 band, where currently sits the 100-day sma.
Later in the session, flash inflation figures in Euroland for the month of April should keep the attention on EUR after yesterday’s dovish message from the ECB.
EUR/JPY relevant levels
At the moment the cross is up 0.08% at 121.11 facing the immediate hurdle at 121.91 (high Apr.27) followed by 122.00 (high Apr.26) and finally 122.89 (high Mar.13). On the flip side, a breach of 120.65 (100-day sma) would expose 120.57 (low Apr.27) and finally 119.50 (55-day sma).