EUR/JPY: Dip demand loses steam near 120, back below 119.50

The renewed bids seen behind the EUR/JPY cross in mid-Asia lost steam just shy of 120 mark in early Europe, sending the rate back below the mid-point of 119 handle.

EUR/JPY offered at daily pivot of 119.94

The EUR/JPY pair now advances +2.12% to 119.48, consolidating the latest leg higher to daily pivot. The spot stalls its recovery momentum from a dip to 119 handle, as the bounce in EUR/USD also lost legs over the last hour near 1.0880 levels.

However, the sentiment remains lifted by renewed selling in the Yen versus its US counterpart, as the European indices futures are seen on a firmer footing amid risk-on, fuelled by Macron’s lead in the R1 of French election. French CAC 40 index leaps +4.10% to 5,220 points.

Focus now remains on the sentiment post-European open for fresh momentum on the cross. Meanwhile, German IFO surveys release could also provide fresh impetus to the EUR.

EUR/JPY: Technical Levels                               

Higher side: 119.94 (daily pivot), 120.36 (100-DMA), 120.70 (post-French election high)

Lower side: 119 (daily low/ round number), 118.73/64 (classic S2/ Fib S3/ 200-DMA), 117.99 (5-DMA)