EUR/JPY Keeps Gains Around 123.50 Ahead of ZEW
The cross in the EUR/JPY holds
the upside in the European morning, extending its recovery from
three-year lows, amid broad yen weakness and strong close on the
Japanese Nikkei.
EUR/JPY looks to test 124 now
The
EUR/JPY pair now rises 0.32% to 123.51, having posted fresh session
highs at 123.57 in the last hour. The EUR/JPY cross is seen oscillating
in a 15-pips narrow range over the past couple of hours, as the yen
consolidates sharp declines witnessed overnight against its American
peer.
While the cross remains well bid also on the back of
sustained gains in the EUR/USD pair heading into the ZEW Surveys.
Markets expect the ZEW business surveys to have improved for April and
hence, keep the EUR buoyed.
Meanwhile, attention also remains on the US housing starts and building permits data due for release later in the NY session.
EUR/JPY Levels to consider
The
pair has an immediate resistance at 124 (round number) and from there
to 124.83 (20-DMA. On the flip side, support is seen at 123/ 122.99
(psychological levels/ 5-DMA) below which it could extend losses to
towards 122.50 (Apr 15 Low).
