EUR/YEN Update – 31/05/2017 (11:23am) – by Arjun Lakhanpal

EUR/YEN Update – 31/05/2017 (11:23am): EURJPY is hovering around 124.00, albeit maintained its offered tone for the fourth consecutive session following the release of Euro-zone flash CPI print. From a technical perspective, the cross has repeatedly managed to hold 123.65 horizontal level on daily closing basis. Hence, it would be prudent to wait for a strong follow through selling pressure before confirming that a near-term top has been formed and the cross is susceptible to any near-term corrective slide. Weakness below 123.65 level might continue to find support near 123.10-12300 region, below which a fresh leg of downslide could drag the cross back towards its next support near mid-122.00s. On the flip side, 124.20-25 area now seems to have emerged as immediate resistance, which if cleared decisively has the potential to lift the cross back towards the key 125.00 psychological mark.