EUR/JPY rebounds from 5-DMA

EUR/JPY found takers at the 5-DMA level of 120.47 and jumped to a high of 120.66 in Asia.

The cross dropped from 121.13 to 120.34 on Monday as the risk-off tone in the markets increased the haven demand for the Japanese Yen.

Eyes Eurozone GDP

The data due later today is expected to show the fourth quarter growth rate remained steady at 1.7% y/y and 0.4% q/q. Traders would also keep an eye on the latest French election polls and the resulting action in the German and French government bond yields.

Widening of the Franco-German yield spread is negative for the EUR and vice versa.

EUR/JPY Technical Levels

A break above 121.20 (50-DMA) would expose 122.00 (zero figure) and 122.52 (Feb 1 high). On the other hand, a breakdown of support at 120.47 (5-DMA) would open up downside towards 120.00 (Zero figure) and 119.68 (100-DMA) levels.