EUR/JPY stages solid comeback, 124 back on sight?

The offered tone around the Japanese currency keeps growing bigger as we head into the European session, providing fresh impetus to the EUR/JPY cross.

EUR/JPY eyes 124

The EUR/JPY pair now advances +0.31% near fresh daily highs of 123.62, reversing a dip to 123.08 levels. The cross in the EUR/JPY reverses a temporary slide seen yesterday and now resumes its bullish run, largely driven by the ongoing slump in the yen to fresh three-week lows versus the greenback amid improved risk conditions and resurgence of June Fed rate hike talks on the table.

On the EUR side of the story, a renewed bout of buying interest in the EUR/USD pair also backs the latest round of strength seen behind EUR/JPY. Meanwhile, amid a data-quiet European session ahead, the cross will track the sentiment on the European stocks, expected to be led by oil-price movement.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124/124.18 (round number/ May 17 High) and from there to 124.36 (50-DMA). On the flip side, support is seen at 123/122.96 (round number/ May 18 low/) below which it could extend losses to towards 121.88 (May 9 Low).