EUR/JPY: Sell-off extends towards 123 ahead of ECB minutes

The EUR/JPY cross is currently experiencing some fresh selling, as the downward pressure intensifies on both the EUR/USD pair as well as on USD/JPY.

EUR/JPY eyes 123

The EUR/JPY pair now drops -0.36% to fresh daily lows of 123.12, having faced strong offers near 123.60/65 band. The cross in the EUR/JPY accelerates losses and now looks to test 123 handle on the back of renewed weakness in the EUR/USD pair, with the prices now testing 1.12 barrier.

Also adding to the bearishness around EUR/JPY, the Japanese currency rebounds sharply against the US dollar as a renewed risk-aversion wave gripped Europe and led the investors to seek safe-havens such as the yen. While markets ignored directionless trading seen in the US dollar against its major competitors.

The immediate focus now remains on the ECB April 21 monetary policy meeting ahead of the US unemployment claims and Philly Fed manufacturing index due later in the NA session.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124/124.18 (round number/ May 17 High) and from there to 124.36 (50-DMA). On the flip side, support is seen at 123/122.96 (round number/ May 18 low/) below which it could extend losses to towards 121.88 (May 9 Low).