EUR/JPY bounces off lows, around 123.80

The selling mood around the European currency plus the increased demand of the Japanese safe haven is weighing on EUR/JPY, which is currently hovering over the 123.80 region.

EUR/JPY supported near 123.10

After dropping as low as the 123.15/10 band in early trade, the cross managed to regain some traction and is now approaching the 123.80 region although still well into the red territory.

The cross suffered the pick up of the risk-off sentiment following heightened concerns over Greece, while market chatter revived the possibility that the country could default on its debt.

In the data space, the better momentum in JPY has been also bolstered by auspicious results from April’s retail sales and the jobs/applications ratio, while the unemployment rate stayed put at 2.8%.

In the euro area, advanced Spanish consumer prices are seen rising 2.0% on a yearly basis in May, while business climate and consumer sentiment among other gauges are due later in the euro region followed by German flash CPI.

EUR/JPY relevant levels

At the moment the cross is losing 0.35% at 123.78 and a breach of 123.16 (low May 30) would expose 122.52 (low May 18) and then 120.97 (100-day sma). On the other hand, the next hurdle lines up at 124.25 (20-day sma) seconded by 124.69 (high May 29) and finally 124.86 (38.2% Fibo of 2014-2016 drop).