EUR/JPY unable to hold to gains, back to 123.50

EUR/JPY failed to hold to gains and dropped back to the 123.50 area amid a stronger yen in the market.

The pair climbed during the European session above 124.00 and reached at 124.18, the strongest level since last Thursday but it failed to hold and pulled back sharply. As the EUR/USD pair did during the last hour, ERU/JPY erased all gains.

The pair dropped to 123.42 and it rebounded but it found resistance below 123.65. It was hovering around 123.50, flat for the day.

EUR/JPY without a clear trend

In the short-term the pair continues to move without a clear bias. The rally from multi-year lows (121.44) lost strength around 124.50, where the 55-day moving average stands and from there it retreated. The decline was capped by another strong area that is the 122.50 zone.

In the short-term the pair could continue moving sideways between 124.50 and 121.50. A break of the range could open the doors for another leg, extending the recovery or triggering a rally toward 120.00. On a wider perspective, the trend continues to favor the yen.