EUR/JPY meets fresh supply post-China open, gives up 124

The EUR/JPY cross retreated sharply from weekly tops and now trades below 124 handle, as a sudden change in risk conditions after negative start to the Chinese equities, bolstered the safe-haven flows for the yen.

EUR/JPY drops as JPY bulls regain control

The EUR/JPY pair now drops -0.31% to 123.87, retreating quickly from fresh session lows reached at 123.79 last minutes. The cross in the EUR/JPY halted its two-day rebound and fell back in the red as sentiment soured after Chinese equities opened on a weaker footing and fuelled a fresh bout of risk-aversion across the markets, boosting the safe-haven appeal of the Japanese currency.

Also, adding to the recent bearishness in the cross, the EUR/USD pair extended to the upside, benefiting from a slight deterioration in the risk conditions. While a lack of fundamentals triggers continue to keep the prices confined in a tight range , as all eyes turn towards Friday’s US retail sales data for fresh direction.

EUR/JPY Levels to consider

The pair has an immediate resistance at 124.44/50 (8-day high) and from there to 124.70 (50-DMA). On the flip side, support is seen at 123.63/59 (20-DMA/ 1h 50-SMA) below which it could extend losses to towards 122.98 (1h 100-SMA).