EUR/JPY supported at 123.70, despite mixed German data

The EUR/JPY pair is seen oscillating back and forth in a 20-pips narrow range so far this session, as renewed weakness in EUR/USD is outweighed by a resumption of the ongoing rally in USD/JPY.

EUR/JPY eyes European open for impetus

The EUR/JPY pair now advances +0.10% to 123.82, making another attempt to regain 124 handle amid a better sentiment towards risk assets, as the Euro Stoxx futures edge 0.20% higher in early Europe, suggesting a positive European open.

The stalled upside in the EUR/JPY cross can be mainly attributed to resurgent USD demand as the European trading gets underway, which triggered a fresh selling wave in the EUR/USD pair, while at the same USD/JPY benefited from rising treasury yields and risk-on moods. Thus, keeping the cross supported at 112.70 levels, where the 5-DMA intersects.

Also, mixed German trade and industrial production data also failed to provide extra legs to the upside in the cross. Focus now shifts towards a slew of second-liner macro data from the US for fresh incentives.

EUR/JPY: Technical Levels                               

Higher side: 123.89 (daily high) 124.11 (May 5 high), 124.52/61 (May 7 & 6 highs)

Lower side: 123.50 (psychological levels), 122.91/85 (classic S1/ 10-DMA), 122.53 (May 4 low)