EUR/JPY recovery loses steam near 5-DMA

The EUR/JPY cross stalled its recovery from 122.30 region as poor sentiment towards risky assets keeps the demand for the yen intact, which puts a lid on the cross.

EUR/JPY faces stiff resistance around 122.75

The EUR/JPY pair now drops -0.20% to 122.65, unable to take out 5-DMA upside barrier placed at 122.82. EUR/JPY cross met supply last hours and now drifts slightly lower from daily tops, on resurgence of bids for the Japanese currency as Euro Stoxx 50 futures dip -0.40% in early European trading, triggered a renewed bout of risk-aversion into the markets.

However, the downside remains capped by a strong rebound in EUR/USD as the US dollar pushes lower against its major peers on the back of profit-taking ahead of the US dataflow due later in the NA session.

EUR/JPY Levels to consider

The pair has an immediate resistance at 122.82/123 (5-DMA/ round number) and from there to 123.15 (10-DMA/ 1h 200-SMA). On the flip side, support is seen at 122.27/25 (daily low & S2) below which it could extend losses to towards 121.88 (May 9 Low).