EUR/JPY recovery gains traction, Monday’s high eyed

EUR/JPY extends its bullish momentum for the third straight session this Tuesday, mainly driven by 65-pips recovery in USD/JPY.

EUR/JPY trades above all DMAs

Currently, EUR/JPY trades +0.25% higher at daily highs of 122.69, heading for a test of Monday’s high reached at 122.93. The cross in EUR/JPY remains strongly bid amid broad yen weakness as risk-on flows return to the Japanese equities.

While the EUR/USD pair stalls its overnight recovery and trades absolutely flat-lined, providing little incentive to EUR/JPY. Focus now remains on the German ZEW surveys due later today and Wednesday’s Tankan indices for further momentum on the prices.

EUR/JPY Levels to consider  

The pair has an immediate resistance at 122.93 (Dec 12 high), above which 123.36 (Dec 8 high) could be tested. On the flip side, support is seen at 122.19 (daily pivot) that at 121.91 (5-DMA).