EUR/JPY clings to recovery gains after mixed EZ PMIs

The EUR/JPY cross failed to add on to its early up-move and remained capped below 122.00 handle on mixed Euro-zone PMI readings.

Currently trading around 121.75 region, the cross failed to attract any follow through buying interest after the composite flash Euro-zone PMI print missed consensus estimates and came-in at 54.3 for January as compared to 54.5 expected and previous month's final reading of 54.4. Adding to this, preliminary print of the Euro-zone services PMI also fell short-off market expectations and hindered the pair's up-move just below 122.00 handle. 

Meanwhile, stronger manufacturing PMI print at 55.1 (vs. 54.8 expected and previous month's 54.9) seems to have negated the effect and limited the downslide, at least for the time being. Moreover, a recovery in European equity market is also denting the Japanese Yen's safe-haven demand and assisting the cross to maintain its bid-tone. 

Technical levels to watch

On a sustained move above 121.80 level should lift the cross towards 122.00-122.10 resistance area ahead of 122.55-60 hurdle. Meanwhile on the downside, 121.60 level now seems to act as immediate support below which the weakness could get extended towards session low support near 121.20 area, en-route 121.00 round figure mark.