EUR/JPY bounces-off 4-week lows, retests 123.50

The cross in EUR/JPY halted its massive downslide and is seen recouping a small portion of the decline heading into the mid-European trades.

EUR/JPY finds support ahead of March 9 lows at 123.00

The EUR/JPY pair slumps -1.33% to 123.47, reversing a brief dip to fresh four-week lows struck at 123.12 in the last hour. The EUR/JPY cross attempts a tepid recovery mainly driven by the recovery in USD/JPY, as the JPY bears take a breather and consolidate the upside before the next leg higher.

Further, the EUR/USD pair also remains under pressure below 1.1400 levels, contributing to the downbeat sentiment surrounding EUR/JPY. Overall, the unstoppable rise seen in the yen over this week has resulted in steep losses in the yen crosses.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124/124.13 (round number/ 10-DMA) and from there to 124.62/68 (20-DMA/ daily R2). On the flip side, support is seen at 123 (Mar 9 March low) below which it could extend losses to towards 122.40 (Feb 24 & 29 Low)