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EUR/JPY bounces-off 5-DMA, regains 125 handle

The cross in the EUR/JPY traded quiet choppy so far this session, although navigated through yesterday’s trading range amid a typical risk-off scenario ahead of key risk events.

EUR/JPY still in the red

The EUR/JPY pair now drops -0.23% to 125.06, recovering slightly from fresh session lows reached just ahead of 5-DMA at 124.92. The EUR/JPY cross trims losses and fights hard to recover lost ground as the bears remain in command amid persisting cautious sentiment in the markets. The yen benefits across the board following a renewed sell-off in the Asian equities and stalled buying in the oil prices.

Adding to the bearish sentiment around EUR/JPY, the EUR/USD pair paused its recovery mode and turned in the negative territory as the US dollar picked-up strength across the board.

Later today, amid a lack of fresh economic news in the European session, focus now shifts towards the US durable goods release due in the NY session for fresh cues on the cross, while the FOMC and BOJ policy meeting continue to remain in focus.

EUR/JPY Levels to consider

The pair has an immediate resistance at 125.49/50 (daily R1/ psychological levels) and from there to 125.86/126 (Apr 6 High/ round number). On the flip side, support is seen at 124.61/ 55 (Mar 22 Low/ 20-DMA) below which it could extend losses to towards 124.17/124 (10-DMA).

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