EUR/JPY finds support near 124.00

After a brief test of the 124.00 neighbourhood in early trade, EUR/JPY has regained buying interest and returned to the 124.20 region, near daily highs.

EUR/JPY gains capped near 124.60

The cross keeps alive the 4-week rally so far, gaining 10 big figures since YTD lows near 114.80 seen in early April to Monday’s yearly peaks in the 124.60 area.

The risk-on scenario that has been prevailing in recent weeks intensified the outflows from the safe haven JPY and gave extra oxygen to the upside momentum in the cross, which was already boosted by the strong rebound in EUR, particularly following the results from the French elections.

On the data front, Japanese Economy Watchers Current Index surprised to the upside in April, while the European Commission should release its Economic Forecasts along with the ECB’s Economic Bulletin in Euroland.

EUR/JPY relevant levels

At the moment the cross is advancing 0.01% at 124.22 facing the immediate hurdle at 124.61 (2017 high May 8) followed by 124.67 (high May 12 2016) and then 126.50 (high Apr.28 2016). On the downside, a breach of 123.46 (low May 10) would expose 122.87 (low May 5) and finally 122.29 (23.6% Fibo of the April-May rally).