EUR/JPY - rejected at 5-DMA, holds above 120.00

EUR/JPY is working hard to avoid a dip below 120.00 levels after having faced rejection earlier today at the 5-DMA level of 120.32.

EUR is at the mercy of Greece & political uncertainty

Greek issue could take an ugly turn as the agreement to unlock bailout payments got delayed. Moreover, creditors demand Athens institutes tax and labour reforms before accessing funds.

Meanwhile, heightened political uncertainty in France and Germany is also weighing over the common currency. Surprisingly, the bid tone around the Yen has failed to strengthen. However, there is growing chatter in the markets that EUR/JPY could retake the roll of global risk barometer in the days ahead.

EUR/JPY Technical Levels

The cross was seen trading around 120.15. A break below 119.92 (session low) could yield a sell-off to 119.64 (previous session’s low), under which the losses could be extended to 119.20 (50-DMA). On the other hand, a break above 120.33 (5-DMA) would expose 121.00 (zero figure) and 121.33 (Feb 10 high).