EUR/JPY testing daily lows around 124.60

The renewed bid tone around the Japanese safe haven currency is dragging EUR/JPY to the area of session lows in the 124.65/60 band.

EUR/JPY weaker on JPY-buying

After advancing to the vicinity of 126.00 the figure on Tuesday, the cross met a wave of selling pressure following increasing jitters on Trump’s Rusia-gate, which gave fresh oxygen to JPY and sparked the current correction lower from levels last traded in April 2016.

Despite the positive momentum around the European currency, risk-off sentiment seems to prevail among traders with the consequent flight-to-safety benefiting the Yen.

On the data front, final April CPI figures in the euro zone are unlikely to grab any attention, while advanced Q1 GDP results are due in Japan on Thursday.

EUR/JPY relevant levels

At the moment the cross is losing 0.50% at 124.73 and breach of 123.26 (low May 12) would expose 122.37 (20-day sma) and finally 120.80 (100-day sma). On the other hand, the next up barrier is located at 125.83 (2017 high May 16) followed by 126.50 (high Apr.28 2016) and then 128.36 (high Mar.31 2016).