EUR/JPY is falling modestly on Thursday, currently around 123.80, after moving away from the lows, boosted by a recovery of the USD/JPY.
The pair today bottomed at 123.30, hitting the lowest level in three days. Earlier it climbed to test weekly highs but lost strength around 124.40 and turned to the downside.
Consolidating after a rally of almost 1000 pips
Despite the decline, EUR/JPY continues to consolidate, moving in a range between 123.00 and 124.50. The euro climbed to the mentioned range after rising 970 pips in a 25-day period. During that rally, it broke various key technical resistances, including last week the 123.00, zone, that capped the upside back in December and January.
A weak yen, Eurozone economic data and a stronger euro, that followed the first and second round of the French election, continue to offer support to the bullish bias in the pair.
Tomorrow in Europe, Germany will report on GDP, also Eurozone Industrial Production data is due. In the US, retail sales and inflation data will be released, that could impact on EUR/JPY through the yen.
EUR/JPY relevant levels
Immediate resistance to the upside is seen around 124.50 (May high), followed by 124.75 (Apr 25 2016 low) and 125.00. On the downside, support might be located at 123.30 (daily low), 123.00 (May 8 low) and 122.60 (May 2 high).