EUR/JPY takes-out Tuesday’s high, 123 back on sight

The EUR/JPY cross extends its recovery mode into a second day today, with the bulls finding support from the rebound in the Asian equities as well as in oil.

EUR/JPY awaits BOJ Kuroda’s speech

The EUR/JPY pair now advances +0.20% to trade near fresh two-day highs of 122.80, having found solid support near 122.60 region. The offered tone around the yen keeps growing bigger as we head towards mid-Asia, now pushing EUR/JPY closer to 123 handle. The Japanese yen is sold into a better risk environment, which usually curbs the demand for safe-havens as appetite for risky assets re-emerges.

Moreover, the cross also finds some support from the EUR/USD pair, as it appears to show some fresh signs of life near 1.1150 after having fallen to fresh ten-month lows a day before. Later today, the broader market sentiment will continue to drive markets ahead of the German Ifo survey and US macro releases.

EUR/JPY Levels to consider

The pair has an immediate resistance at 123 (round number/ 5-DMA) and from there to 123.18/25 (10-DMA/ 1h 200-SMA). On the flip side, support is seen at 122.60/59 (daily low & pivot) below which it could extend losses to towards 121.88 (May 9 Low).