EUR/JPY trims daily losses, remains in a range

• Yen losses strength amid risk appetite as Dow Jones gains 1%.
• EUR/JPY remains in range, unable to recover 128.50.

The EUR/JPY pair is posting modest losses on Wednesday. After falling to 127.57, a 2-day low, the pair bounced to the upside and it was hovering around 128.00.

The recovery from the lows was boosted by a rally in USD/JPY that offset the decline in EUR/USD. Overall, EUR/JPY continues to trade sideways, with a negative bias.

EUR/JPY Key Levels

A consolidation on top of 128.50 would change the short-term tone favoring further gains for the euro. On the flip side, a break of an uptrend line from last week lows, (at the moment at 127.60) could clear the way for a test of the weekly low at 127.25.

To the downside, support levels might be located at 127.55, 127.10 and 126.60 (Jun 19 low). On the upside, resistance is seen at 128.30, 128.50 and 128.90.