Forex: EUR/JPY briefly dips below 124.00

The euro extended losses versus the yen and briefly dipped below the 124.00 mark after a G20 draft was published and showed members pledged to refrain from competitive devaluation.

EUR/JPY slipped to a fresh 3-day low of 123.78 in recent dealings, although it found support and bounced slightly. At time of writing, the euro-yen cross is trading around 124.10, where it records a 1.2% loss on the day.

In terms of technical levels, if the EUR/JPY loses the 123.80 zone, next supports are seen at 123.43 (Feb 8 low), 123.00 (psychological level) and not much until 121.00. On the upside, resistances could now be found at 124.75 (Feb 13 low), 125.19 (100-hour SMA) and 125.94 (intraday high).