EUR/JPY: Bulls fighting hard to reclaim 123 handle

The EUR/JPY cross finally broke the overnight consolidation phase to the upside, although the bulls lack vigour and fail to take the prices beyond 123 handle.

EUR/JPY: Upside capped by slightly hawkish Kuroda

The EUR/JPY pair now advances +0.23% to 122.82, hovering below fresh session highs reached at 122.90 in the last hour. A renewed buying interest seen in the EUR/JPY cross over the last hour can be attributed to fresh JPY selling as risk-on rally in the European equities backed by higher oil prices, weighed on the safe-haven demand for the yen. The Japanese currency wiped-out entire BOJ Kuroda’s hawkish comments inspired gains and fell back in the red against the American dollar.

Meanwhile, the EUR/USD pair continues to trade in a flat-lining around 1.1150 levels, providing little impetus to EUR/JPY. Besides, upbeat German Ifo survey also failed to lift the prices above 123 handle. Next of relevance remains the US flash services PMI and goods trade balance data amid a string of Fed speaks due later in the NA session.

EUR/JPY Levels to consider

The pair has an immediate resistance at 123/123.03 (round number/ 5-DMA) and from there to 123.18/20 (10-DMA/ 1h 200-SMA). On the flip side, support is seen at 122.60/59 (daily low & pivot) below which it could extend losses to towards 121.88 (May 9 Low).