EUR/JPY bounces and rises to test 120.30

EUR/JPY approached last week lows earlier today but in managed to bounce to the upside, amid a rally of EUR/USD and a stabilization of USD/JPY. 

The Japanese currency lost strength in the market as equity prices recovered ground during the American session and after a decline in US bonds. As yields turned to the upside, the yen pulled back. 

EUR/JPY rose 80 pips from the lows and recently peaked at 120.30, the highest level since last Wednesday. It was trading around 120.15, at the same price zone it closed on Friday. The pair continues to move sideways after falling last week to 2-week lows.

Levels to watch 

To the downside, the area around 119.50 continues to be a relevant support and a daily close below could open the doors for an extension of the slide; before that level, support could be seen at 119.90. 

To the upside, 120.30 is a key resistance that capped the upside several times since last Wednesday. A break higher could lead to an extension of the correction. Potential resistance levels might be seen at 120.60 (Mar 21 low). and 120.90.