EUR/JPY stages solid comeback from 3-year lows

The cross in the EUR/JPY caught fresh bid-wave post-European open, with the bulls on their way to fill in the bearish opening gap amid easing risk-off market profile.

EUR/JPY recovers almost 1 big figure drop

The EUR/JPY pair now loses 0.11% to 122.60, extending recovery from fresh three-year lows struck at 121.72 in early Asia. The EUR/JPY cross wiped-out major part of losses and now looks to bring an end to its recent downtrend as an improving risk sentiment underpins the recovery in the cross.

The ongoing recovery in the oil prices helps cool off the persistent risk-off environment and therefore, lends some support to the European equities. Such a turnaround in risk conditions appears to diminish the safe-haven bids for the yen across the board. While the EUR/USD pair also swings higher above 1.13 handle on the back of broad based US dollar retreat.

Focus now remains on the Fed official Dudley’s speech due later today in absence of fresh fundamental drivers.

EUR/JPY Levels to consider

The pair has an immediate resistance at 123/123.16 (round number/ 1h 100-SMA) and from there to 123.52/63 (1h 200-SMA/ Apr 15 High). On the flip side, support is seen at 122 (psychological levels) below which it could extend losses to towards 121.72 (multi-year low).