EUR/JPY unable to hold above 123.00, consolidates weekly losses

EUR/JPY  is about to end the day modestly lower after being unable to rally above 123.00. A stronger yen in the market pushed the pair to the downside at the beginning of the American session, erasing gains.

Lower but far from weekly lows

Earlier (Asian session) the pair bottomed at 122.26, the lowest level in two weeks, after the yen spiked higher in the market but then lost strength and EUR/JPY turned to the upside and reached loves on top of 123.00. For the second day in a row it was rejected from 123.00 and pulled back.

Currently is hovering around 122.80, less than 15 pips below yesterday’s closing price and 80 pips below the level it had at the beginning of the week.

Still under pressure

During the last three weeks, the pair has been able to hold above multi-year lows and also on top of the 121.00 support area, but the upside also remained limited. Price contours to face resistance below the 20-day moving average that stands around 123.00; above the next dynamic resistance is a downtrend line form January. It needs to break higher to remove bearish momentum.