EUR/JPY deflates from highs near 123.70

After hitting fresh 4-month tops near 123.70 in early trade, EUR/JPY has returned to the 123.00 neighbourhood, where it seems to have found decent support for the time being.

EUR/JPY gains capped near 123.70

Despite today’s pullback, the cross keeps alive the three-week rally from April lows in the 114.80 region, including the gap higher following the first round of the French presidential elections.

The Japanese safe haven stays bid so far today, while the recent string upside momentum around the European currency appears mitigated somewhat, all adding to the daily retracement.

In the data space, the big event today will be the release of US Non-farm Payrolls during April, which are poised to drive the sentiment later in the session and are expected at 180K, while the unemployment rate is seen at 4.6% from 4.5%.

EUR/JPY relevant levels

At the moment the cross is losing 0.28% at 123.19 facing the immediate support at 122.93 (low May 5) followed by 121.59 (23.6% Fibo of the April-May rally) and finally 120.65 (100-day sma). On the flip side, a breakout of 123.68 (high May 5) would aim for 123.89 (high Dec.30 2016) and finally 124.13 (high Dec.15 2016).