EUR/JPY recovers modestly, unable to rally above 123.00

By FXStreet EUR/JPY is rising for the third day in a row as it continues to slowly recover fro 121.67 (3-year low). The pair peaked during the Asian session at 123.50 but then turned to the downside. It bottomed before the beginning of the US session at 122.28.

After Wall Street opening bell it turned again to the upside. It lost momentum around 123.15/20 and it was trading near 123.00, 45 pips above yesterday’s closing price.

EUR/JPY still correcting

The pair continues to move with a bullish bias in the very short term as the price holds inside an upward channel that currently offers support around 122.50; a consolidation below 122.50 would expose 122.10 (May 3 low) and then the 121.60/70 area, where 2016 lows are located.

To the upside, a key resistance could be seen between 122.25 (upper limit of the channel) and 122.50 (daily high); a break high could trigger an acceleration of the euro. On a wider perspective, the dominant trend remains bearish.
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Source:: FX Street