EUR/JPY struggling near one-week lows, around mid-123.00s

The EUR/JPY cross extended its losing streak for the third consecutive session and tumbled below the 124.00 handle to one-week lows, albeit has managed to bounce off from lows.

The cross came under some intense selling pressure on Tuesday amid a fresh wave of global risk-aversion trade, which boosted the Japanese Yen's safe-haven appeal. The Japanese Yen also benefitted from today's better-than-expected release of labor cash earnings data from Japan, rising at the fastest pace in four months. 

The selling pressure, however, seems to have abated following the release of better-than-expected Euro-zone Sentix investor confidence data that helped the cross to recover a bit back to mid-123.00s.

   •  Sentix: Euro zone investor morale rises to highest level in a decade - RTRS

From a technical perspective, the pair has managed to bounce off 123.15-20 immediate support and hence, it would be prudent to wait for a decisive break through the said support before confirming a fresh bearish break-out, which would turn the cross vulnerable to extend its near-term downward trajectory from over 1-year highs touched in May.

Technical levels to watch

Weakness below 123.15-20 support is likely to accelerate the slide towards 122.55 support (May 18 low), below which the cross seems to break below the 122.00 handle and head towards teting 50-day SMA support near 121.35 region.

On the upside, any recovery attempts now seems to confront immediate resistance near 123.80-124.00 area, which if cleared seems to lift the cross back towards 124.50 intermediate resistance en-route 124.80-125.00 strong barrier.