The cross in the EUR/JPY snapped its 4-day rally and slipped in the negative territory this Wednesday, the yen outperformed its European counterpart amid broad based USD sell-off.
EUR/JPY bounces-off lows near 5-DMA at 126.81
The EUR/JPY pair trades -0.18% lower at 127.03, making another attempt towards daily highs posted at 127.33. The EUR/JPY cross is seen reversing a part of losses in the last hour, mainly on the back of a sudden bout of buying interest witnessed in the EUR/USD pair, as the greenback resumes the drop backed by Yellen’s dovish comments on the monetary policy.
However, the bears are seen defending control as the higher demand for the Japanese currency continues to fuel the selling pressure on the cross. In the meantime, markets search for fresh incentives and brace for the German CPI figures ahead of the US ADP non-farm employment change report due later in the NA session.
EUR/JPY Levels to consider
The pair has an immediate resistance at 127.30/34 (Mar 11 High/ daily R3) and from there to 128.68 (100-DMA). On the flip side, support is seen at 126.81/78 (5-DMA/ Daily Low) below which it could extend losses to towards 126.35/31 (10-DMA/ Mar 27 Low).
(Market News Provided by FXstreet)