EUR/JPY reverses and drops back under 122.00

EUR/JPY  was gaining ground for the second day in a row but reversed and dropped sharply erasing daily gains in a few hours.

EUR/JPY recovery ends

After starting the week below 121.00, at the lowest since April 2013, the pair turned to the upside and started to recover ground. It continue to rise on Tuesday until it reached 122.70 (daily high) and reversed. Since then it has fallen a hundred pips.

Currently it trades at the lows at 121.66/71, down 0.35% for the day. EUR/JPY started to decline as EUR/JPY failed to break above 1.1370 and fell to test daily lows near the 1.1340 area and while the yen recovered strength in the market.

EUR/JPY technical levels

To the upside, potential resistance levels might be located at 121.90 (June 1 low), 122.70 (daily high) and 123.05/10 (May 25 & 26 high). To the downside, support could be seen at 121.65/70 (daily low / June 3 high), 121.05 (June 2 low) and 120.80 (June 6 low).