EUR/JPY deflates to lows near 123.50

By FXStreet The now offered tone around the European currency is dragging EUR/JPY lower on Wednesday, testing the area of daily lows in the mid-123.00s.

EUR/JPY in 4-day lows

The cross is losing ground for the third session in a row today following a softer bias around the shared currency and some steady demand for the safe haven JPY, all against the backdrop of increasing cautiousness in light of the upcoming ECB meeting.

In fact, EUR is poised to remain under pressure as market consensus expects the ECB Council to finally deliver additional measures to tackle the ongoing disinflation pressures.

EUR/JPY relevant levels

At the moment the cross is retreating 0.33% at 123.52 facing the next support at 122.41 (low Feb.24) followed by 121.98 (low Mar.1) and then 119.10 (low Apr.2 2013). On the flip side, a break above 124.41 (23.6% Fibo of 132.30-121.98) would expose 125.03 (20-day sma) and finally 125.64 (high Mar.4).
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Source:: FX Street