EUR/JPY fades a spike to 121.80, Yellen in focus

The shared currency continues to keep the upper edge over its Japanese counterpart in the European session, with EUR/JPY now easing-off session highs posted at 121.80 levels earlier on the day.

EUR/JPY retracing towards 5-DMA at 121.55?

The EUR/JPY pair climbs +0.39% to 121.57, having recovered almost 100-pips so far this session. The EUR/JPY cross remains strongly bid, although deflated from highs over the last hour, mainly driven  renewed selling interest seen in the EUR/USD pair as the buck regains momentum.

However, the downside remains cushioned on the back of a robust recovery staged by USD/JPY from one-month lows struck at 106.38 levels at Asia open. The cross trims gains as markets turn cautious heading closer towards the US LMCI release and Fed President Yellen’s speech due later in the American session.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 122/122.10 (round number/ 1h 100-SMA) and from there to 122.57/76 (1h 200-SMA/ 20-DMA). On the flip side, support is seen at 121 (round number) below which it could extend losses to towards 120.75 (Multi-year low).