Forex: EUR/JPY grinds lower as sentiment wanes

FXstreet.com (Barcelona) - The cross is prolonging its intraday descent on Thursday, hovering over the area of 122.80/85 as risk aversion is dominating the markets. Today’s decline has been accentuated by the increasing selling interest surrounding the European currency.

“Near-term support is at 121.15, a break below would expose 118.73. Resistance is at 126.04 ahead of 127.71”, suggested G.Yu and G.Berry, Strategists at UBS, confirming the bank’s neutral bias on the cross.

At the moment, the pair is down 1.12% at 122.81 and a breakdown of 122.39 (Kijun Sen line) would open the door to further decline towards 122.20 (MA55d) and finally 122.04 (low Mar.20).
On the upside, resistance levels line up at 124.38 (high Mar.21) followed by the psychological mark at 125.00 and then 126.03 (high Mar.12).