The EUR/JPY is flirting with 123.00 handle as the common currency attempts to regain poise following the CPI-led sell-off.
The cross fell to a three-day low of 122.84 levels after the weaker-than-expected Eurozone CPI release strengthened the case for a more aggressive ECB easing next week. The EUR bears are now taking a breather, which helped the cross recover from daily lows.
However, the bid tone around JPY remains strong on account of losses in the European equities and US index futures. The cross currently trades around 123.06 levels.
EUR/JPY Technical Levels
The immediate resistance is seen at 123.27 (hourly 5-MA), above which the pair could target 123.80 (hourly 100-MA). On the other hand, a breakdown of 122.84 (daily low) would open doors for a drop to 122.45 (Feb 24 low).