- The US-China negotiation driven risk sentiment favors safe-havens like the JPY.
- U-turn from immediate resistance-line highlights recent lows.
With the risk aversion ruling over market sentiment off-late, the EUR/JPY pair took a U-turn from immediate resistance-line as it trades near 123.20 ahead of the Europe markets open on Friday.
Considering the pair’s latest pullback from short-term resistance, coupled with the risk-on sentiment, chances of its further declines to 123.00, 122.85 and recent lows near 122.50 can’t be denied.
In case of additional south-run below 122.50, 61.8% Fibonacci expansion of moves since early-month can please sellers with 122.00 the figure.
On the flip side, a break of 123.60 resistance-line can trigger the quote’s rise to 124.30 whereas 124.70 could flash on the chart afterward.
Given the prices keep rallying beyond 124.70, 125.00 and 125.25/30 can become buyers’ next landmarks.
EUR/JPY hourly chart
Trend: Bearish
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