EUR/JPY bounces-off 50-DMA, re-takes 124 handle

Fresh bids emerged for EUR/JPY at 50-DMA support, driving the cross back towards 124 handle, largely on the back of yen’s relative weakness.

EUR/JPY re-attempts 124 handle

The EUR/JPY pair trades modestly flat at 123.82, recovering slightly from fresh session lows struck at 123.70 in the last hour. The EUR/JPY cross attempts a minor recovery largely on the back of weakening yen against its US counterpart amid ongoing talks of a delay in sales tax hike by the Japanese government officials and also on a strong close seen on Japan’s  Nikkei 225 index.

However, the upside faces strong hurdle as the ongoing offered tone behind the EUR/USD pair on the back of a weaker German retail trade report, keeps the cross undermined. With the German retail sales data out of the way, focus remains on the German employment data and EU flash CPI estimate for fresh take on EUR/JPY.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 124 (round number) and from there to 124.67 (May 12 High). On the flip side, support is seen at 123.70 (Session Low/ 50-DMA) below which it could extend losses to towards 123.53/50 (Daily Low/ Psychological levels).