Forex: EUR/JPY off fresh 3-month lows, recovers above 103.00

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Forex: EUR/JPY off fresh 3-month lows, recovers above 103.00

FITITOL--> FXstreet.com (Barcelona) - EUR/JPY is currently at 103.21, off session lows 103.14 touched following China CPI when EUR/USD broke to fresh 3-month lows barely above the 1.2900 mark, with local share markets plunging on the news. Risk sentiment is already in the aversion side after huge operational loses coming from biggest US bank in assets JPMorgan which sent markets into the deep red after the NY close.

After printing fresh 3-month lows EUR/JPY Wednesday at 102.75, now the cross holds right above the intraday ascending trendline coming from this record low, with “stop-loss sell orders below 102.50 in EUR/JPY”, according to Sean Lee from ForexLive, which “could generate some serious momentum if get triggered”, Sean says, adding: “On the other hand, if those levels hold, then we could see some serious short-covering.”

According to IFR Markets: “Some bids ahead of 103.00 but stops build sub-102.95, more sub-102.75.”

Immediate support to the downs ide show at recent session and May 11 lows 103.15/20, followed by yesterday's lows 102.90 and Wednesday's lows 102.75 ahead of big Fibo underneath at 102.50. For the upside, resistance show at recent session highs and Tuesday's lows 103.47/51, followed by yesterday's highs 103.77 and May 07 highs 104.44.