EUR/JPY finds support near 124.10, Eurogroup eyed

After two consecutive sessions with gains, EUR/JPY is now facing some downside pressure although stays above the 124.00 handle for the time being.

EUR/JPY gains capped near 126.00

In spite of the correction lower, the cross remains in the upper end of the yearly range, with the upside capped in levels just below 126.00 the figure seen last Tuesday and decent support in the mid-122.00s.

EUR has been supported largely by a pick up in the risk-on trade coupled with increasing weakness in the greenback. In addition, the speculative community has turned EUR net long two weeks ago for the first time since May 2014, lending extra support to the single currency from another front.

In the data space, the Eurogroup meeting could get some attention today ahead of advanced PMIs later in the week and ECB-speakers. In Japan, inflation figures for the month of May will be the salient point on Friday.

EUR/JPY relevant levels

At the moment the cross is losing 0.24% at 124.37 and a breach of 124.12 (low May 22) would expose 123.29 (20-day sma) and then 122.52 (low May 18). On the other hand, the next hurdle lines up at 124.98 (high May 19) followed by 124.86 (38.2% Fibo of 149.76-109.47) and finally 125.83 (2017 high May 16).