EUR / JPY recovers above 124.00, maintains daily losses

  • EUR / JPY is still capped at 124.50 and 125.00.
  • The bullish momentum loses steam, the euro is back above 124.00.

The EUR/JPY it is falling after gaining 150 pips in three days. It peaked slightly above 124.50 on Thursday, the highest level in two weeks before turning lower. It bottomed out at 123.90, a two-day low and then rallied above 124.00.

The bounce from the EUR / JPY low found resistance at 124.15 / 20. It is around 124.15, consolidating a modest daily loss. It is the first descent since the beginning of the week.

A correction in global equity markets boosted momentum in favor of the yen and against the euro. Still, most currency pairs are moving sideways in modest ranges amid the US holidays.

Stock futures are posting small losses on a day with a tight economic calendar. The ECB Minutes raised concerns about the economic and inflation outlook for the region and pointed to actions in December.

From a technical perspective, the EUR / JPY bullish momentum lost steam after encountering resistance around 124.50. Above that area is the critical resistance at 125.00 that limited the upside in October and November. An earlier consolidation would clear the way to more profit. On the other hand, support levels are seen at 123.55 / 60, followed by 122.85 and 122.50.

Technical levels

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