EUR/JPY minor recovery lacks momentum below 124 handle still

Currently, EUR/JPY is trading at 123.57, down -0.31% on the day, having posted a daily high at 124.52 and low at 122.99.EUR/JPY has been a proxy to the political instability in the EU of late and the yen rallies on a risk-off environment and visa-verse. EUR/JPY is also directly correlated to the stocks and rallies in a recovery that we have seen since the middle of last month. EUR/JPY has been as high as been attempting the 124 handle in the wake of the Macron victory within a bullish spoke. However, the trade was a fade yesterday and the minor recovery from the lows of 123.05 has been shallow so far even while the VIX trades at yearly lows and stocks remain sold on Wal Street.

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EUR/JPY levels

According to analysts at Commerzbank explained that EUR/JPY's near-term outlook is bullish. "EUR/JPY has reached and exceeded the 124.08 December 2016 high. It has tested the 38.2% retracement if the move down from 2014 at 124.76 and this is likely to hold the initial test. Dips lower are indicated to hold circa 121.90/120.80 and while above here the market is immediately bid."

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