EUR/JPY fades a spike to 123.20 as risk-off seeps back

By FXStreet The retreat in the Asian indices back towards monthly lows, particularly the Japanese stocks, boosted the JPY bulls and drove the yen crosses lower across the fx board.

EUR/JPY capped by daily R2

The EUR/JPY pair now trades +0.18% higher at 123.05, retreating from session tops previously posted at 123.22. The cross in the EUR/JPY pares gains as the USD/JPY pair paused its upbeat momentum and receded lower in tandem with moves witnessed in the Japanese benchmark index, the Nikkei 225.

Although the cross managed to regain 123 handle as a sudden spurt of buying interest seen in the EUR/USD pair helped keep the downside in check. Ahead in the day, low volumes and limited volatility is expected as most major European markets remain closed in observance of Whit Monday holiday.

EUR/JPY Levels to consider

The pair has an immediate resistance at 123.33/41 (5 & 20-DMA) and from there to 124.52 (50-DMA). On the flip side, support is seen at 122.87/74 (Daily Pivot/ S1) below which it could extend losses to towards 122.62 (May 16 Low).
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Source:: FX Street