EUR/JPY buyers appeared near 124.20

The current pick up in the demand for the single currency is helping EUR/JPY to regain some traction and test the 1.24.40/45 band.

EUR/JPY supported by 20-day sma

The cross has reverted part of the initial negative tone after briefly testing the key 20-day sma around 124.20, although it still trades in the negative territory, adding to Friday’s significant pullback.

Thin trade conditions due to the holidays in the UK and the US plus empty docket in Japan should leave the cross to the mercy of the risk appetite trends and to the second-tier releases in Euroland.

In fact, EMU’s M3 Money Supply and Private Sector Loans are due next ahead of the speech by ECB’s M.Draghi at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament.

EUR/JPY relevant levels

At the moment the cross is losing 0.04% at 124.41 and a breach of 124.23 (low May 29) would expose 124.20 (20-day sma) and then 122.52 (low May 18). On the other hand, the next hurdle lines up at 125.47 (high May 26) seconded by 125.83 (2017 high May 25) and finally 126.50 (high Apr.28 2016).