EUR/JPY regains 124.00 amid risk-recovery

The yen buying stalled across the board, offering some respite to cross in EUR/JPY, which managed to bounce-back above 124 handle.

EUR/JPY flirts with daily pivot at 124.14

The EUR/JPY pair now drops -0.23% to 124.13, having reversed a dip to daily lows of 123.91. The cross came under fresh selling pressure in Asia, after the Japanese currency regained footing against the American dollar amid a cautious tone prevalent in the market, after yesterday’s oil-price sell-off.  

Moreover, softening US inflation outlook, in the wake of oil prices having entered bear market, dampened rate hike expectations, which weighed further on the USD/JPY pair, and in turn on EUR/JPY.

However, over the last hours, the spot is seen trimming losses amid a recovery in risk sentiment, as oil prices look to stabilize and thus, offer some respite to the Asian equities. The Japanese benchmark index, the Nikkei 225 turned positive to trade above 20,150 levels, up +0.15% on the day.

Meanwhile, the EUR/USD pair consolidates the upside, which helps keep the downside limited in EUR/JPY. Next of note for the cross remains the US unemployment claims and Fedspeaks, besides, risk trends will continue to have a major bearing in the day ahead.

EUR/JPY: Technical Levels                               

Higher side: 124.52/61 (May 7 & 6 highs), 125 (round figure), 125.33 (Jun 2 high)

Lower side: 123.91 (daily low), 123 (key support), 122.34 (multi-week low)