EUR/JPY falls to 120.50, 6-week low

Despite the strong rally of EUR/USD, that climbed above 1.0700, the euro was unable to recover against the yen. The Japanese currency remains strong in the market and hit the highest level in eight weeks against the euro.  The common currency weakened after the sharp decline in the EUR/GBP. 

EUR/JPY bottomed at 120.54 during the European session, the lowest since December 5. Then it bounced to the upside, during Theresa May’s speech, that triggered risk appetite in the market. After hitting 121.40, turned again to the downside. 

The pair was hovering around 120.80/90, marginally lower for the day, headed toward the second daily decline in a row and the sixth out of the last seven days. So far, EUR/JPY is holding above 120.00 ahead of Thursday European Central Bank meeting. 

Technical levels 

To the upside, resistance levels could be seen at 121.15/20 (Jan 12 low), 121.60 (Dec 29, Jan 13 low) and 122.30 (20-day moving average). On the opposite direction, support might lie at 120.50 (daily low), 120.00 (psychological) and 119.40 (Nov 30 low).