EUR/JPY drops to lows near 123.00

The offered tone around the single currency is driving EUR/JPY lower to the area of session troughs near 123.00 the figure.

EUR/JPY lower on JPY-strength, CPI

The buying mood surrounding the Japanese currency since early trade plus a softer note in EUR following disappointing inflation figures in the euro area are collaborating in EUR/JPY’s daily downside to the 123.00 region, closer to recent 3-year troughs around 122.40 posted last week.

EUR has gathered further downside traction after EMU’s headline CPI has come in short of expectations for the current month, contracting 0.2% YoY while Core CPI rose 0.7% YoY vs. consensus at 0.9%.

EUR/JPY relevant levels

At the moment the cross is retreating 1.25% at 123.09 facing the next support at 122.41 (low Feb.24) followed by 119.06 (monthly low Apr.2013) and then 113.54 (monthly low Jan.2013). On the flip side, a break above 126.80 (20-day sma) would expose 128.19 (high Feb.16) and finally 128.79 (55-day sma).

The offered tone around the single currency is driving EUR/JPY lower to the area of session troughs near 123.00 the figure…

(Market News Provided by FXstreet)

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